US department store chain Macy’s has cut its annual profit forecast due to concerns over tariffs and their impact on consumer demand. The company, which operates the largest brick-and-mortar presence in the US, expects a 10-25 cents per share hit from tariffs.
Macy’s will raise prices selectively to offset the tariffs’ effect on margins, according to CEO Tony Spring. The company maintains its annual sales target of $21 billion but lowered its adjusted profit per share forecast to between $1.60 and $2.00.
Shares saw a brief gain in early trading, driven by analysts’ positive assessment that Macy’s has not cut guidance like some other retailers have done. Despite this, the company’s shares remain down 28% for the year. The company reported a better-than-expected first quarter, driven by improved performance at remodeled stores and its focus on high-end products.
However, analysts point out that there is still work to be done in terms of comparable sales. With tariffs expected to increase inflation, department store chains are bracing themselves for increased competition from cheaper off-price and big-box retailers.
Source: https://www.reuters.com/business/retail-consumer/macys-cuts-annual-profit-forecast-amid-tariff-uncertainty-2025-05-28