Macy's Reports Mixed Results and Lowers 2025 Guidance Amid Economic Pressures

The retailer beats profit expectations but faces declining sales, cautious consumers, and tariff-related challenges.

Macy's reported adjusted earnings per share of $1.80 for Q4 2024, surpassing analyst expectations of $1.54, but sales fell 4.3% to $7.77 billion, missing estimates.
Comparable sales grew 0.2%, driven by investments in upgraded 'First 50' stores, while non-upgraded locations and the Macy's nameplate banner underperformed.
The company forecasts 2025 revenue between $21 billion and $21.4 billion, below Wall Street's expectations of $21.66 billion to $21.81 billion, with same-store sales expected to decline up to 2%.
Newly imposed tariffs on goods from China, Canada, and Mexico are expected to increase costs, adding to the financial strain on both Macy's and its customers.
CEO Tony Spring highlighted progress in the company's turnaround strategy, including store closures and investments in luxury divisions like Bloomingdale's and Bluemercury, which posted strong sales growth.