UBS reiterated a Sell rating on Macy’s (NYSE:M), cutting the price target to $12 per share from $12.75 in a note to clients on Wednesday.
Analysts said the firm expects the selling pressure on Macy's earnings to continue.
"We believe macro forces will cause the consumer spending environment to slow and this will negatively impact Macy's earnings," explained analysts.
"We anticipate weaker-than-expected sales growth and margin compression will cause M to miss Street EPS forecasts, pressuring its stock price."
Analysts added that looking into FY24, they see the market underestimating the pressure on Macy's earnings from share loss as consumers migrate to online pureplay channels, retailers with better value-for-money propositions such as TJX, and brands' own stores and websites.
Macy's shares are up 1.2% at the time of writing on Wednesday.