Macy’s (M) is joining a growing list of major retailers issuing weak outlooks as it battles headwinds such as a cautious consumer and tariffs from the Trump administration.
The department store chain reported Thursday that fourth quarter adjusted earnings per share came in at $1.80, beating analysts estimates of $1.54. But same store sales only grew 0.2% and missed the Street’s estimate of 1.23% growth.
Investors will be laser-focused on guidance and earnings call commentary as tariff concerns loom. This week, the Trump administration imposed a 25% tariff on Mexico and Canada after a 30-day pause and added a second round of 10% tariffs on Chinese goods.
CEO Tony Spring said on the company’s earnings call that Macy’s is “taking a prudent approach to our outlook reflecting the external uncertainties that both we and the consumer are facing.”
For 2025, Macy’s projects revenue of $21 billion to $21.4 billion, below 2024’s $22.29 billion and missing estimates of $21.66 billion.
Same-store sales are expected to decrease between 0.5% to 2% year over year, compared to the 0.71% increase that Wall Street anticipated.
Adjusted earnings per share of $2.05 to $2.25 also came in under consensus estimates of $2.31 and were lower than the $2.64 it clocked last year.
Macy’s stock dropped roughly 4% in premarket trading.
This week, shares of Best Buy (BBY), Target (TGT), and Abercrombie & Fitch (ANF) all plunged after the companies issued soft guidances.
Citi analyst Paul Lejuez wrote in a client note that while private-label brands only make up 15% of Macy’s sales, “tariffs affecting national brands” like Nike (NKE), Steve Madden (SHOO), or Adidas (ADDYY) could impact its costs and pricing.
“Management has indicated in the past that its consumer is focused on value, and it will be interesting to hear management’s view of whether they would try to pass higher costs through to consumers,” Lejuez wrote.
Morningstar analyst David Swartz called tariffs “another problem that Macy’s has to deal with, on top of all the other problems that Macy’s has to deal with.”
As of Wednesday’s close, Macy’s stock has dropped 20% year to date and 34% in the past 12 months. The S&P 500 (^GSPC) is hovering around the flat line for 2025 and has gained 15% in the past year.
Here’s what Macy’s shared in its fourth quarter results, versus Bloomberg consensus estimates:
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Net sales: $7.77 billion, versus $7.76 billion
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Adjusted earnings per share: $1.80, versus $1.54
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Same-store sales growth: 0.2%, versus 1.23%
