Macy’s (M.N) released its forecast for the new trading period, revealing annual sales and profit below Wall Street expectations. The department-store chain is struggling to cope with reduced consumer spending in the US, exacerbated by new trade restrictions.
Shares of Macy’s fell 3% in early trading. CEO Tony Spring stated that he doesn’t anticipate consumers feeling relief in the short term due to inflation and tariff pressures persisting in the first quarter.
Macy’s predicted 2025 net sales between $21 billion and $21.4 billion, which is lower than analysts’ estimates of $21.81 billion. The company also expects annual adjusted profit per share to be between $2.05 and $2.25, below analyst predictions of $2.31.
Morningstar analyst David Swartz stated that the outlook for Macy’s is not inspiring and that the company still struggles despite a plan to turn it around through store closures and investments in high-potential locations. However, Swartz noted that there isn’t enough evidence to suggest that the turnaround plan is “really working”.
Despite this, Macy’s managed to top analyst estimates of $1.53 per share with an adjusted profit per share of $1.80. The company also resumed its share buybacks under its remaining $1.4-billion authorization.
Macy’s fourth-quarter sales fell 4.3% to $7.77 billion, compared to analysts’ estimate of $7.87 billion.
Source: https://www.reuters.com/business/retail-consumer/macys-forecasts-2025-sales-profit-below-expectations-retailers-battle-soft-2025-03-06