Macy’s Implements Limited Price Increases Amid U.S. Tariffs Impact

Macy's reported a slight decline in first-quarter sales and profit, attributing the impact primarily to cautious consumer spending and U.S. tariff-related costs, which led to a lowered profit forecast for 2025 despite maintaining its annual sales outlook. CEO Tony Spring emphasized that price increases due to tariffs are selective and limited, with Macy's strategically adjusting product offerings by renegotiating orders and removing items where the value proposition is insufficient. About 20% of Macy's merchandise comes from China, with efforts underway to diversify sourcing. While the company is raising prices on some items to offset tariff-related expenses, it is doing so carefully to avoid harming sales and is willing to absorb some costs when necessary. Macy's continues to close underperforming stores as part of a multi-year plan to improve revenue, with about 66 store closures announced recently and a total of 150 planned by 2027. The stock rallied following the earnings beat, reflecting investor confidence despite the cautious profit outlook.