Macy’s Q1 2025 Earnings: M Stock Analysis
- Macy's lowered its full-year profit forecast Wednesday, attributing the change to increased tariffs and evolving discretionary spending trends.
- The retailer now projects adjusted earnings per share between $1.60 and $2 for fiscal 2025, a decrease from the previous estimate of $2.05 to $2.25.
- For the fiscal first quarter,Macy's reported adjusted earnings of 16 cents per share on revenue of $4.60 billion, surpassing analysts' expectations of 14 cents per share and $4.50...
Macy’s Q1 2025 earnings surprised analysts, but the retailer slashed its profit outlook for the year, impacted by tariffs and shifts in consumer spending. Despite exceeding expectations with earnings per share of 16 cents on $4.6 billion in revenue, the company anticipates adjusted earnings between $1.60 and $2.00 per share. Macy’s is actively undergoing a turnaround, shuttering stores—approximately 150 by early 2027—and focusing on Bloomingdale’s and Bluemercury for growth. The primarykeyword, M stock analysis, reveals how this strategic shift and the secondarykeyword, economic factors, are reshaping Macy’s trajectory, even as it invests in customer experiance enhancements. Stay informed with News Directory 3. Discover what’s next for the retail giant.
Macy’s Cuts Profit Outlook Despite Earnings Beat
Updated May 28, 2025
Macy’s lowered its full-year profit forecast Wednesday, attributing the change to increased tariffs and evolving discretionary spending trends. The proclamation came even as the department store chain reported better-than-expected quarterly earnings.
The retailer now projects adjusted earnings per share between $1.60 and $2 for fiscal 2025, a decrease from the previous estimate of $2.05 to $2.25. Though, Macy’s maintained its sales guidance of $21 billion to $21.4 billion, though this would represent a decline from the $22.29 billion reported in the prior year.
For the fiscal first quarter,Macy’s reported adjusted earnings of 16 cents per share on revenue of $4.60 billion, surpassing analysts’ expectations of 14 cents per share and $4.50 billion in revenue.Net income for the quarter was $38 million,down from $62 million in the same period last year.
Despite the profit outlook reduction, Macy’s shares saw a premarket increase of nearly 2%.
Economic factors, including tariff policies, have complicated Macy’s turnaround strategy. The company is in the midst of a three-year plan to streamline operations, which includes closing underperforming stores and investing in Bloomingdale’s and Bluemercury.Efforts to improve customer experience, such as faster online deliveries and increased staffing, are also underway.
Macy’s plans to shutter approximately 150 of its namesake stores by early 2027.
The Macy’s brand showed the weakest performance in the first quarter, with comparable sales down 2.1%. Though, when considering only the stores not slated for closure, comparable sales declined by 1.9%.
Bloomingdale’s saw a 3.8% increase in comparable sales, while Bluemercury’s comparable sales rose 1.5%.
Macy’s has invested in 125 locations, enhancing staffing and displays, and adjusting merchandise. These locations outperformed the overall Macy’s brand, with comparable sales down 0.8%.
Tony Spring, Macy’s CEO, noted earlier this year that the company’s guidance accounted for economic uncertainty, acknowledging that even affluent customers were experiencing confusion and concern.
Macy’s recently announced the appointment of Thomas Edwards as its new CFO, effective June 22.Edwards succeeds Adrian Mitchell, who is departing the company.
Macy’s stock has declined about 29% this year, trailing the S&P 500’s gains. The stock closed Tuesday at $12.04 per share, valuing the retailer at $3.35 billion.