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Macy’s warns profit margins are shrinking

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Already navigating tumbling sales, Macy’s is preparing for even tighter margins.

At the company’s annual investor day, Macy’s CFO Karen Hoguet said that second-quarter gross margins are running about 1 percentage point below what they were last year. The company is slashing costs in a bid to maintain its earnings forecast, which it reaffirmed on Tuesday, according to Bloomberg.

Coinciding with the announcement, the department store chain’s stock fell by 7.5% to $22.08 — marking the worst intraday drop…