Macy’s cuts profit forecast amid trade war concerns

​ Updated May 28, 2025

Macy’s, citing cautious consumer spending and the potential impact of the U.S. trade war, has trimmed its profit forecast for 2025. The department store chain, a major player in retail sales, also owns Bloomingdale’s and bluemercury.

Despite the lowered outlook, Macy’s first-quarter performance largely surpassed expectations, and the company maintained its overall sales forecast for the year. Shares of Macy’s increased more than 4% before trading began Wednesday.

Sales for the quarter fell ⁢to $4.79 billion from $5 billion the⁤ previous year, but this⁢ was still better than the $4.42 billion projected‌ by analysts polled by FactSet. Comparable sales, including online⁤ channels, decreased by 2%. However, Bloomingdale’s and Bluemercury⁣ both experienced growth in ⁣comparable sales.

Neil Saunders, managing director‌ of GlobalData, highlighted Bloomingdale’s 3% comparable sales increase. He⁣ noted that Bloomingdale’s “good execution” and balanced product assortment served it well, ⁢especially compared to chains focused on higher-priced items.

Macy’s earned $38 million, or 13 cents per share, for the period ending May 3. This compares to $62 ​million, or 22 cents per share, a year earlier. Excluding certain items, earnings reached 16 cents per share, exceeding Wall Street estimates by a penny. the company ⁢still anticipates 2025‌ sales ⁢ between $21 billion and $21.4 billion.

The revised forecast anticipates full-year adjusted earnings between $1.60 and $2 per share, down from the previous⁢ projection of $2.05 to $2.25 per share. Analysts had projected full-year sales of $21.03 billion and ⁢an adjusted per-share profit of $1.91.

Macy’s and other⁣ retailers are grappling with uncertainty surrounding tariffs, making planning arduous. They also face cautious consumers who are cutting ​back on spending.

“Our first⁤ quarter results give us confidence ⁢that we ⁤have the right strategy and team in place to​ navigate the current⁢ habitat while we continue to invest in our customer on the ⁢path to returning Macy’s, Inc. to enduring⁢ profitable growth,” ⁢Chairman and CEO Tony Spring said Wednesday.

What’s next

Macy’s‌ executives said the company is⁢ focusing on improving merchandise and services⁤ to navigate the ‍unpredictable environment created by changing tariff policies. They are ⁤working ‍with suppliers to increase variety, reduce redundant styles, and add exclusive offerings, while also focusing on improving its store label ⁣brand.