Macy's misses the mark on fourth quarter profit as it issues cautious 2025 guidance

Thu, Mar 6, 2025, 3:55 AM 4 min read

Macy's (M) is joining a increasing database of retailers to contented a anemic outlook arsenic the erstwhile iconic retailer posts tepid 4th fourth results.

On Thursday earlier marketplace open, the section elephantine reported adjusted net per stock of $1.80, beating analysts estimates of $1.54. While aforesaid store income grew 0.2%, missing the street's estimation of 1.23%. Its Q4 gross of $7.77 cardinal somewhat bushed expectations of $7.76 billion.

Investors volition beryllium laser focused connected guidance arsenic tariff concerns loom. This week, the Trump medication imposed a 25% tariff connected Mexico and Canada aft a 30 time pause, and added a 2nd circular of 10% tariff connected Chinese goods.

For 2025, Macy's projects gross of $21.0 cardinal to $21.4 billion, beneath 2024's $22.29 cardinal and missing estimates of $21.66 billion.

Same-store income are expected to alteration betwixt 0.5% to 2% twelvemonth implicit year, compared to the 0.71% summation that Wall Street anticipated.

Adjusted net per stock of $2.05 to $2.25 besides came successful nether statement estimates of $2.31, and little than the $2.64 it clocked past year.

This week, shares of Best Buy (BBY), Target (TGT), and Abercrombie & Fitch (ANF) each plunged aft the companies issued brushed guidances.

Citi expert Paul Lejuez wrote successful a lawsuit enactment that portion backstage statement lone makes up 15% of Macy's sales, "tariffs affecting nationalist brands" similar Nike (NKE), Steve Madden (SHOO), oregon Adidas (ADDYY) could interaction its costs and pricing.

"Management has indicated successful the past that its user is focused connected value, and it volition beryllium absorbing to perceive management’s presumption of whether they would effort to walk higher costs done to consumers," Lejuez wrote.

Morningstar expert David Swartz called tariffs "another occupation that Macy's has to woody with, connected apical of each the different problems that Macy's has to woody with."

As of Wednesday's close, Macy's banal has dropped 20% twelvemonth to day and 34% successful the past 12 months. The S&P 500 (^GSPC) is hovering astir level for 2025 and has gained 15% successful the past year.

Here's what Macy's shared successful its 4th fourth results, versus Bloomberg statement estimates:

• Net sales: $7.77 billion, versus $7.76 billon

• Adjusted net per share: $1.80, versus $1.54

• Same-store income growth: 0.2%, versus 1.23%

Here's what Macy's shared successful its fiscal afloat twelvemonth results, versus Bloomberg statement estimates:

• Net sales: $22.29 billion, versus $22.39 billion

• Adjusted net per share: $2.64, versus $2.37

• Same-store income growth: -0.9%, versus -1.01%