Macy’s reported a surprising first-quarter sales and profit increase despite citing more cautious customers and rising tariff costs. The department store chain, which owns Bloomingdale’s and Bluemercury, topped analyst expectations for the quarter.
Sales at Macy’s dropped 2% in the first quarter, but still beat estimates of $4.42 billion. Comparable sales, including online sales, also dipped 2%. However, Bloomingdale’s and Bluemercury saw comparable store sales growth.
Macy’s CEO Tony Spring attributed the retailer’s surprising performance to its efforts to diversify product sourcing and cancel orders with suppliers where the value proposition isn’t worth it. The company has also been making selective price increases in specific brands and categories.
However, Spring warned that tariff costs are becoming more significant, leading to a revised profit outlook for 2025. Macy’s now expects full-year adjusted earnings between $1.60 and $2 per share, down from its prior forecast of $2.05 to $2.25 per share.
The retailer’s cautious approach is in line with other retailers struggling with the impact of tariffs on their businesses. Industry analysts are increasingly concerned about the uncertainty surrounding tariffs, which are making it difficult for companies to plan and for consumers to make purchases.
Source: https://apnews.com/article/macys-trump-tariffs-economy-bluemercury-bloomingdales-4ca4e672fb72f7aff2b1bf75df8c0187