Another day, another guidance cut by a retailer, this time from Macy’s which during its investor meeting, warned investors that the company’s gross margin could be below the forecast given just this part February, some 60-80 basis points lower.

According to Fly on the Wall, Macy’s CFO Karen Hoguet said at investor day that the gross margin for the fiscal year ending January 2018 is trending 60bps-80bps below FY17, with the 2Q rate ~100bps below 2QFY17. One possible explanation: liquidation of excess inventory as the company is unable to sell enough product per planned prices.

The silver lining: Macy’s, at least for now, reaffirmed its FY18 sales and EPS forecast, and said it plans for exclusive product to reach 40% by 2020.

The market did not take the warning in stride, and M stock has tumbled to session lows, down as much as 5% to lowest intraday since mid-May.