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yesterday

Macy’s Cuts 2025 Profit Outlook After Q1 Beat, Citing Tariff Costs and Spending Slowdown

Macy’s cut its EPS outlook to $1.60–$2 per share to account for mounting tariff costs, cautious consumer spending, a competitive promotional landscape.

FILE - A Macy's department store is in Bay Shore, Long Island, New York, on Tuesday, December 12, 2023. (AP Photo/Ted Shaffrey, File)
Image
A customer exits the Macy's flagship department store in midtown Manhattan in New York City, U.S., December 11, 2023.
FILE - This is a sign outside a Best Buy store in Bethel Park, Pa., on Thursday, May 15, 2025. (AP Photo/Gene J. Puskar, file)

Overview

  • The company reported first-quarter revenue of $4.6 billion and adjusted EPS of $0.16, topping analyst estimates.
  • Macy’s trimmed its full-year EPS guidance to $1.60–$2.00, down from $2.05–$2.25, due to higher tariffs, increased promotions and moderating discretionary spending.
  • The retailer reaffirmed its 2025 sales forecast of $21 billion to $21.4 billion despite lowering its profit outlook.
  • CEO Tony Spring said Macy’s will implement ‘surgical’ price hikes on select items to offset costs from roughly 20% of merchandise sourced from China.
  • As part of its Bold New Chapter plan, Macy’s will close about 150 underperforming stores by early 2027 and continues to invest in Bloomingdale’s and Bluemercury, which saw comparable sales gains.