US Retailer Macy’s Has Cut Its Full-Year Profit Forecast Due to Rising Tariffs. The Company Attributes the Downbeat Expectations in Part to Tariffs Imposed by President Trump, Which Are Damaging Consumer Spending and Heightening Competition.
Macy’s has slashed its full-year profit forecast as it grapples with the impact of rising tariffs on its business. The company blamed the downbeat expectations partly on tariffs imposed by President Donald Trump, which are affecting consumer spending and increasing competition in the market.
The retailer’s earnings release follows a year since it embarked on a three-year plan to improve its balance sheet by closing underperforming stores and optimizing its e-commerce service. Macy’s has pledged to close around 150 stores by 2027 as part of this strategy.
Despite the challenges posed by tariffs, Macy’s reported stronger-than-expected revenue in its latest quarterly earnings release, with $4.6 billion in sales over the past three months. However, the company’s CEO, Tony Spring, noted that the tariff escalation poses a significant challenge for Macy’s.
Tariffs on China have become a major concern for US retailers like Macy’s, which imports a significant amount of apparel from the country. Roughly 20% of Macy’s merchandise originates in China, and the tariffs are affecting consumer sentiment and bottom-line performance.
Source: https://abcnews.go.com/Business/macys-slashes-profit-forecast-tariffs-dampen-outlook/story?id=122261443