Macy's has revised its profit outlook for fiscal year 2025 downward, citing the impact of higher tariffs and increased promotional activities on its profitability, according to a company statement released on May 28, 2025. Despite this, the department store chain reported quarterly earnings and revenue that surpassed Wall Street expectations.
For the fiscal year 2025, Macy's now anticipates adjusted earnings per share (EPS) ranging from $1.60 to $2.00, down from the earlier forecast of $2.05 to $2.25. The company continues to project full-year sales between $21 billion and $21.4 billion, reflecting a decline from $22.29 billion recorded the previous year.
During the fiscal first quarter ending May 3, Macy's reported adjusted EPS of 16 cents, exceeding analysts’ average estimate of 14 cents. Revenue reached $4.60 billion, above the expected $4.50 billion. However, net income fell to $38 million (13 cents per share) compared to $62 million (22 cents per share) in the same period last year. Sales declined from $4.85 billion year-over-year.
Economic uncertainties, including tariff increases announced by former President Donald Trump, have presented challenges. Macy's remains committed to an ongoing three-year turnaround strategy focused on streamlining operations by closing approximately 150 underperforming Macy's stores by early 2027 while bolstering its stronger segments, including Bloomingdale's luxury brand and the beauty retailer Bluemercury.
In the first quarter, comparable sales for Macy’s namesake stores declined 2.1% year-over-year. Excluding the stores slated for closure, the comparable sales drop narrowed slightly to 1.9%. Meanwhile, Bloomingdale's comparable sales increased by 3.8%, and Bluemercury's rose 1.5% during the same period.
To revitalize its primary store base, Macy's has invested in enhanced staffing, improved merchandising, and revamped store displays at 125 locations—over one-third of the 350 stores it intends to retain. These upgraded stores saw a smaller sales decline of 0.8% compared to the previous year.
The company plans to elaborate on its tariff and pricing strategies during its upcoming earnings call scheduled for 8 a.m. ET. In a March earnings call prior to recent tariff announcements, CEO Tony Spring acknowledged economic uncertainty impacting consumer behavior across all customer segments.
In leadership changes, Macy's named Thomas Edwards as its new Chief Financial Officer, effective June 22. Edwards joins from Capri Holdings, where he served as CFO and COO. He will replace Adrian Mitchell, who is departing the company.
As of May 27, 2025, Macy's stock has declined approximately 29% year-to-date, lagging behind the S&P 500's 1% gain. Macy's shares closed at $12.04, valuing the retailer at roughly $3.35 billion.
Note: This is a developing story. Further updates will be provided as more information becomes available.
