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3w ago

Macy's Cuts Profit Forecast, Holds Sales Target Under Tariff Pressures

Selective price increases with planned closures of about 150 underperforming stores aim to mitigate rising import costs.

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

  • Macy’s lowered its 2025 adjusted earnings‐per‐share outlook to $1.60–$2.00 after reporting first‐quarter EPS of $0.16, beating analysts’ 14-cent forecast.
  • The retailer reaffirmed its full‐year sales guidance of $21.0 billion to $21.4 billion, fueled by 3.8% comparable gains at Bloomingdale’s and 1.5% growth at Bluemercury.
  • CEO Tony Spring attributed roughly $0.15–$0.40 of the earnings revision to Trump administration tariffs and pledged “surgical” price hikes on select items.
  • Under its Bold New Chapter strategy, Macy’s will close about 150 underperforming namesake stores by early 2027 while investing in stronger locations.
  • Best Buy also trimmed its 2025 revenue and profit outlook because of sustained tariff‐driven cost pressures, underscoring industry‐wide uncertainty over import duties.