Retail stocks, already under pressure, were crushed Wednesday after Macy's reported sales that were worse than feared and the company said it sees few signs of improvement.
The retail giant slashed its full-year forecast amid continuing weak apparel demand. Macy's CEO Terry Lundgren said in a statement he does not expect consumers to start spending more anytime soon.
Macy's is the latest retailer to report lousy earnings results. Gap's stock plunged as much as 15 percent Monday after the retailer reported yet another quarter where sales declined. L Brands, the maker of Victoria Secret, also missed expectations.
Macy's warning did not bode well for the retailer's rivals. Shares of Nordstrom, Kohl's, J.C. Penney and Dillard's, all posted big losses. Luxury retailers Michael Kors and Ralph Lauren also traded lower.