Macy's 2025 Guidance: Revenue Decline and Store Closures

Macy's reported mixed fourth-quarter fiscal 2024 results, with adjusted earnings per share of $1.80 surpassing analyst expectations of $1.55, despite a 4.3% decline in net sales to $7.77 billion, missing the consensus estimate slightly. The results reflect ongoing challenges, including external uncertainties such as tariffs, inflation, changing consumer behavior, and adverse weather. Macy's projects a revenue decline for fiscal 2025, with guidance below Wall Street's expectations at $21 billion to $21.4 billion. Comparable sales showed minimal growth, with strategic initiatives in certain stores showing promise, though overall sales trends remain weak. Despite better-than-expected profit margins, Macy's stock has underperformed the market, reflecting investor concerns over its future outlook and the retail sector's vulnerability to economic shifts. The company continues to focus on strategic investments and cost management, while planning to close underperforming stores to mitigate these challenges.