Macy's Reports Lower Sales Growth and Issues Cautious 2025 Outlook

The retailer cites economic uncertainty, new tariffs, and shifting consumer behavior as key challenges impacting its performance and forecasts.

Macy's fourth-quarter adjusted earnings per share of $1.80 exceeded analyst expectations of $1.54, but same-store sales grew only 0.2%, falling short of the 1.23% forecasted growth.
The company projects 2025 revenue between $21.0 billion and $21.4 billion, below 2024's $22.29 billion and analysts' estimates of $21.66 billion.
Macy's expects adjusted earnings per share for 2025 to range from $2.05 to $2.25, lower than the $2.31 analysts predicted and the $2.64 reported last year.
Newly announced tariffs, including a 25% tariff on goods from Mexico and Canada and additional tariffs on Chinese imports, are expected to increase costs and pressure pricing strategies.
Macy's is investing in its Bloomingdale's and Bluemercury brands, which saw strong comparable sales growth, while continuing a turnaround plan that includes store closures and modernization efforts.