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Macy's Reports Lower Sales Growth and Issues Cautious 2025 Outlook

The retailer cites economic uncertainty, new tariffs, and shifting consumer behavior as key challenges impacting its performance and forecasts.

NEW YORK, NEW YORK - JANUARY 13: People walk by a Macy's store in Brooklyn after the company announced it was closing the store along with over 60 others on January 13, 2025 in New York City. Macy's, once the nation's premier department store, has struggled in recent years with the competition from online retailers and discount stores such as Walmart. Macy's has said that the closures would allow them to prioritize its roughly 350 Macy’s remaining locations. (Photo by Spencer Platt/Getty Images)
FILE - A Macy's department store is in Bay Shore, Long Island, New York, on Tuesday, December 12, 2023. (AP Photo/Ted Shaffrey, File)
A customer exits the Macy's flagship department store in midtown Manhattan in New York City, U.S., December 11, 2023. REUTERS/Brendan McDermid/File Photo
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Overview

  • Macy's fourth-quarter adjusted earnings per share of $1.80 exceeded analyst expectations of $1.54, but same-store sales grew only 0.2%, falling short of the 1.23% forecasted growth.
  • The company projects 2025 revenue between $21.0 billion and $21.4 billion, below 2024's $22.29 billion and analysts' estimates of $21.66 billion.
  • Macy's expects adjusted earnings per share for 2025 to range from $2.05 to $2.25, lower than the $2.31 analysts predicted and the $2.64 reported last year.
  • Newly announced tariffs, including a 25% tariff on goods from Mexico and Canada and additional tariffs on Chinese imports, are expected to increase costs and pressure pricing strategies.
  • Macy's is investing in its Bloomingdale's and Bluemercury brands, which saw strong comparable sales growth, while continuing a turnaround plan that includes store closures and modernization efforts.