Macy’s forecast annual sales and profit below Wall Street’s expectations on Thursday, joining several U.S. retailers in signaling that shoppers were holding off buying apparel and accessories in the face of economic uncertainty.
Reuters
The department-store chain, which sources a significant portion of its self-branded goods from China, is also expected to take a hit as President Donald Trump‘s newly announced tariffs will likely place an additional burden on already tight American household budgets.
Retailers from Walmart to Target have also issued cautious forecasts for the year on concerns about a potential hike in product prices across categories including food, automobiles and electronics, which could deter consumers from buying these items.
Macy’s said it expects 2025 net sales between $21 billion and $21.4 billion, compared with the average analyst estimate of $21.81 billion, according to data compiled by LSEG.
The company sees annual adjusted profit per share between $2.05 and $2.25, compared to an estimate of $2.31 per share.
It is also resuming share buybacks under its remaining $1.4-billion share repurchase authorization.
Macy’s nameplate banner saw comparable sales fall 0.9% on an owned-plus-licensed basis in the fourth quarter.
CEO Tony Spring, who took over a year ago, has outlined a plan to turn the struggling department-store chain around by closing 150 Macy’s stores through 2026.
The company is betting on sales growth by opening more stores of its higher growth Bloomingdale’s and Bluemercury luxury divisions, which saw comparable sales on an owned basis rise 4.8% and 6.2%, respectively, in the reported quarter.
Macy’s fourth-quarter sales fell 4.3% to $7.77 billion, compared to analysts’ estimate of $7.87 billion.
It had said in January that it expected net sales to be at or slightly below the low end of its $7.8 billion to $8 billion forecast.
