Today, Macy’s cut its full-year profit guidance due to expected tariff impacts, despite beating Wall Street’s quarterly earnings expectations.
In its recent earnings report, Macy’s revised its adjusted earnings per share forecast for fiscal 2025 to a range of $1.60 to $2, down from the earlier estimate of $2.05 to $2.25.
The company confirmed its full-year sales forecast to be between $21 billion and $21.4 billion, representing a decrease from $22.29 billion in the previous full year.
Macy’s CEO Tony Spring told the media, “You’re dealing with it on both the demand side as well as the increased cost side. And so navigating that, we have a series of different scenarios to try to figure out kind of what will be the reality, and we want our guidance to reflect the flexibility of that uncertainty, so that we can react in real time to how we serve or better serve the consumer,”
Spring continued, “It’s not a one-size-fits-all kind of approach… There are going to be items that are the same price as they were a year ago. There is going to be, selectively, items that may be more expensive, and there are items that we might not carry because the pricing doesn’t merit the quality or the perceived value by the consumer.”
Spring’s comments come after the company’s announcement of several leadership changes, including a new Chief Financial Officer, Thomas Edwards, who is set to begin on June 22.
Today, company shares were about 29% lower than at the start of this year.
By CEO NA Editorial Staff