Macy's Cuts Forecast as Profits, Shares Decline

Macy's reported a first-quarter 2025 decline in both net sales, which fell about 5% to $4.6 billion, and adjusted earnings per share, which dropped to $0.16, though both surpassed analyst expectations. The company lowered its full-year adjusted earnings forecast to $1.60–$2.00 per share, citing ongoing U.S. tariff uncertainty, softer consumer spending, and heightened competition from discount and big-box retailers. Despite these pressures, Macy's maintained its annual sales guidance of $21–$21.4 billion. Luxury divisions Bloomingdale’s and Bluemercury posted sales growth, contrasting with declines at flagship Macy’s stores. The retailer is pursuing store closures, investments in high-potential locations, and improvements in digital and customer loyalty initiatives. Macy’s shares have fallen nearly 29% year-to-date, reflecting investor concerns about its turnaround efforts.