Macy’s on Wednesday slashed its annual revenue forecast and warned of incoming value hikes to offset President Trump’s hefty tariffs.
The legacy division retailer chain now expects adjusted earnings per share of $1.60 to $2 in 2025 — down from its earlier forecast of $2.05 to $2.25.
Macy’s CEO Tony Spring advised CNBC about 15 cents to 40 cents per share of that forecast drop is because of the tariffs.
The corporate additionally nodded to challenges from a slowdown in shopper spending and extra aggressive promotions and reductions throughout the retail trade.
“(Higher) pricing is working its way into the system slowly,” Spring mentioned throughout a post-earnings name.
“That’s why we have taken a more cautious approach to our outlook for the year.”
He advised CNBC the retailer can be “surgical” about its pricing technique, elevating solely sure gadgets and leaving others the identical value as they have been a yr in the past.
Macy’s reaffirmed its annual gross sales forecast of $21 billion to $21.4 billion, which might be a decline from final yr’s $22.29 billion.
It additionally reported earnings and income barely above expectations for the three months ended Could 3.
Adjusted earnings per share have been 16 cents, beating projections of 14 cents, and income got here in at $4.6 billion, above expectations of $4.5 billion.
Reported income was nonetheless a far drop from the $4.85 billion seen in the identical quarter final yr.
Shares in Macy’s jumped 3.4% premarket on Wednesday.
The retailer is a few yr by means of Spring’s three-year turnaround plan, which is concentrated on closing weaker shops – with plans to shut 150 Macy’s places by early 2027 – and boosting the corporate’s Bluemercury and Bloomingdale’s companies.
Macy’s to this point has invested in additional staffing, improved shows and a brand new mixture of merchandise at 125 places, or a few third of the namesake shops that the corporate plans to maintain open.
Comparable gross sales at these places fell 0.8% in comparison with the identical interval final yr – higher than the two.1% drop throughout the general Macy’s enterprise.
“The remodeled Macy’s stores are performing better. But this company isn’t reporting consistently positive comparable sales so there’s still a lot of work to do,” mentioned Morningstar analyst David Swartz.
Comparable gross sales at Macy’s shops excluding the places which might be anticipated to shutter fared higher, at a 1.9% decline.
Identical-store gross sales at Bloomingdale’s, which sells high-end clothes, and Bluemercury, a luxurious skincare and wonder retailer, jumped 3.8% and 1.5%, respectively, in comparison with the yr earlier than.
That’s not an uncommon pattern for Macy’s, which has seen web gross sales fall for 12 straight quarters at its namesake shops whereas Bluemercury has reported 4 years of constructive gross sales.
Macy’s shares are down about 27% to this point this yr.
A number of different retailers have reduce or suspended their annual steering as they face heightened uncertainty amid commerce warfare tensions.
Dick’s Sporting Items, nonetheless, stood by its full-year forecast on Wednesday regardless of looming tariff-related pressures.
It reaffirmed its annual earnings per share forecast between $13.80 and $14.40, in step with the $14.29 anticipated by analysts.
The favored sporting items retailer is projecting income between $13.6 billion and $13.9 billion, which can be in step with expectations of $13.9 billion.
“We are reaffirming our 2025 outlook, which reflects our strong start to the year and confidence in our strategies and operational strength while still acknowledging the dynamic macroeconomic environment,” CEO Lauren Hobart mentioned in a press launch.
Within the first quarter, the corporate reported adjusted earnings per share of $3.37 and income of $3.17 billion, beating expectations of $3.13 billion.
