Macy’s is lowering its annual earnings guidance after the department store struggled with a big earnings miss during the second quarter as it was forced to slash prices on unsold merchandise. If you’re wondering what this has to do with travel one of the factors they cited was a worsening climate for tourism that led to rising inventory levels.

Other factors included a fashion miss, and slow sell-through of warm weather clothing.

Donald Trump’s trade war with China is hammering retailers. The administration delayed a 10% tariffs on many goods found at the mall like some toys, clothing and shoes toys until Dec. 15, from Sept. 1. But Macy’s is grappling with a 25 percent hike on furniture products, which was implemented in May.

Macy’s is the first major retailer to report quarterly earnings and what it revealed does not bode well for the sector. Shares of major retailers slumped before the market opened. Kohl’s, Dillard’s and Nordstrom all fell between 4% and 6%.

Like many other mall-based stores, Macy’s is under pressure to reinvent itself as shoppers increasingly buy online. Macy’s has been expanding its store labels and opening more off-price Backstage stores. It’s rolled out technology that allows customers to skip the line at the register.

It’s also been closing stores.

In February, the department store announced a multiyear restructuring program that that shrinks management ranks and, hopefully, makes the company more nimble.

Macy’s reported second-quarter profit of $86 million, or 28 cents per share. That’s far from the per share earnings of 45 cents that Wall Street was looking for, according to a survey by Zacks Investment Research.

Revenue of $5.55 billion also fell short.