Business

Storm warning at Macy’s

Macy’s warned that Hurricane Sandy and its aftermath may take a toll on holiday business.

The department-store giant raised its outlook for fourth-quarter profits, but the forecast fell short of Wall Street’s view.

Macy’s shares dipped 2.3 percent, to $40.45, on the news.

The iconic department store chain yesterday reported a 3.4 percent rise in profits in the third quarter, which closed two days before Hurricane Sandy hit the East Coast last week.

Looking ahead, Macy’s expects to earn anywhere from $1.94 to $1.99 per share in the fourth quarter — less than the $2.05 Wall Street had forecast.

The retailer blamed the shortfall on disruptions from Sandy, which temporarily shuttered more than 200 stores. The lost days will cut into November sales and add pressure for stores to make up the difference in December.

“Customers in the most directly impacted area of Long Island and New Jersey have other priorities right now,” said Karen Hoguet, chief financial officer at Macy’s.

“We are spending unplanned dollars to make sure that our stores recover and are staffed,” she said.

Hoguet added that clogged transportation routes also have made it difficult for shoppers and suppliers alike to reach stores.

Macy’s Inc. earned $145 million, or 36 cents, for the three months ended Oct. 27. That beat the 29 cents forecast by analysts.

Revenue rose 3.7 percent to $6.07 billion.