Macy's forecasts 2025 sales, profit below expectations as retailers battle soft demand

Reuters

Thu, Mar 6, 2025, 3:58 AM 2 min read

(Reuters) -Macy's forecast yearly income and nett beneath Wall Street's expectations connected Thursday, joining respective U.S. retailers successful signaling that shoppers were holding disconnected buying apparel and accessories successful the look of economical uncertainty.

The department-store chain, which sources a important information of its self-branded goods from China, is besides expected to instrumentality a deed arsenic President Donald Trump's recently announced tariffs volition apt spot an further load connected already choky American household budgets.

Retailers from Walmart to Target person besides issued cautious forecasts for the twelvemonth connected concerns astir a imaginable hike successful merchandise prices crossed categories including food, automobiles and electronics, which could deter consumers from buying these items.

Macy's said it expects 2025 nett income betwixt $21 cardinal and $21.4 billion, compared with the mean expert estimation of $21.81 billion, according to information compiled by LSEG.

The institution sees yearly adjusted nett per stock betwixt $2.05 and $2.25, compared to an estimation of $2.31 per share.

Shares of the Bloomingdale's genitor roseate 2% successful premarket trading. Macy's said it is besides resuming stock buybacks nether its remaining $1.4-billion stock repurchase authorization.

Macy's nameplate banner saw comparable income autumn 0.9% connected an owned-plus-licensed ground successful the 4th quarter.

CEO Tony Spring, who took implicit a twelvemonth ago, has outlined a program to crook the struggling department-store concatenation astir by closing 150 Macy's stores done 2026.

The institution is betting connected income maturation by opening much stores of its higher maturation Bloomingdale's and Bluemercury luxury divisions, which saw comparable income connected an owned ground emergence 4.8% and 6.2%, respectively, successful the reported quarter.

Macy's fourth-quarter income fell 4.3% to $7.77 billion, compared to analysts' estimation of $7.87 billion.

It had said successful January that it expected nett income to beryllium astatine oregon somewhat beneath the debased extremity of its $7.8 cardinal to $8 cardinal forecast.

(Reporting by Ananya Mariam Rajesh successful Bengaluru; Editing by Pooja Desai)