Macy’s disappointing results darken outlook for other department store sector

Shares of department-store chains took a dive Thursday, highlighting a broad selloff in the retail sector. Headlining the downdraft were shares of Macy’s Inc., which tumbled to a near six-year low after disappointing quarterly results.

A popular exchange-traded fund that tracks the retail sector, the SPDR S&P Retail ETF XRT, -2.70% sank 2.7%, after closing at a 2 1/2-month high on Wednesday. Of the sector tracker’s 101 equity components, 82 closed lower.

Macy’s stock M, -17.01% plummeted 17.0% to close at the lowest level since Aug. 23, 2011, after the retailer’s first-quarter profit, revenue and same-store sales all missed expectations. The stock has now plummeted 32% year to date, while the SPDR S&P Retail ETF XRT, -2.70% has shed 2.6% and the S&P…