Retailer Macy's has reported an unexpected decline in sales.
It blamed consumers' hesitation to spend on non-essentials, leading to deeper markdowns and a disappointing profit.
The retailer said comparable sales and overall sales slid 0.8% in the second quarter. Analysts expected comparable sales to rise 2.3%.
Chief Executive Terry Lundgren in a statement blamed the results on the "continuing uncertainty" people have about spending on items they do not need in a tough economy. In May, the retailer had warned that its budget-conscious shoppers were being cautious again.
The results come a week after a group of large US retailers posted disappointing sales for July and had to resort to discounts to spur buying.
Many US shoppers, including Macy's middle-class customers, are contending with payroll taxes that are higher than a year ago and a job market that is only improving at a snail's pace.
In a research note earlier this week, Morgan Stanley analyst Kimberly Greenberger said the quarter was generally tough for department store chains in part because of less mall traffic, particularly in July.
Macy's said it had accelerated the receipt of orders to be able to sell more merchandise in areas of the country where school resumes earlier.
Macy's also got help from its Bloomingdale's chain, where sales rebounded after signs of weakness in the spring.
Macy's reported net income of $281m, or 72 cents a share for the quarter that ended Aug. 3, up slightly from $279m, or 67 cents per share a year earlier.
The retailer resorted to slashing prices to clear unsold merchandise and lowered its profit forecast for the year. It now expects earnings of between $3.80 and $3.90 per share, compared with a previous range of $3.90 to $3.95.
