New York, May 28 (AP) Macy's sales and profit slipped in its first quarter and the department store, citing more cautious customers and the impact that the US trade war will have on the company and its shoppers, trimmed its profit forecast for 2025.
However, the New York retailer which also owns upscale Bloomingdale's and the Bluemercury cosmetics chain, topped most performance expectations for the first three months of the year and maintained its sales forecast for the year.
Macy's sales dropped to USD 4.79 billion from USD 5 billion a year earlier, better than the USD 4.42 billion that analysts polled by FactSet expected.
Comparable sales, which include online channels, dipped 2 per cent. Bloomingdale's and Bluemercury both saw comparable sales growth.
“Our first quarter results give us confidence that we have the right strategy and team in place to navigate the current environment while we continue to invest in our customer on the path to returning Macy's, Inc. to sustainable profitable growth,” Chairman and CEO Tony Spring said in a statement on Wednesday.
For the period ended May 3, Macy's earned USD 38 million, or 13 cents per share. That compares with USD 62 million, or 22 cents per share, a year ago.
Stripping out certain items, earnings were 16 cents per share, which topped Wall Street's estimate by a penny.
The company still anticipates 2025 sales in a range of USD 21 billion to USD 21.4 billion. It now expects full-year adjusted earnings between USD 1.60 and USD 2 per share. Its prior forecast was for an adjusted profit of USD 2.05 to USD 2.25 per share.
Industry analysts had been projecting full-year sales of USD 21.03 billion and an adjusted per-share profit of USD 1.91.
Macy's and other retailers are wrestling with uncertainty about tariffs that's making it hard to plan, while contending with customers who seem to have the same issues and are pulling back on spending.
Teen retailer American Eagle Outfitters withdrew its financial outlook for the year earlier this month citing “macro uncertainty” and said it would write down USD 75 million in spring and summer merchandise.
Ross Stores did the same last week.
Walmart, the nation's largest retailer, got a public scolding from President Donald Trump after it said this month that it has already raised prices on some items and would have to do so again right when the back-to-school shopping season kicks off. Trump told the retail giant that it should “eat” the additional costs created by his tariffs.
Target Corp. announced last week that sales fell more than expected in the first quarter, and the retailer warned they will slip for all of 2025 as its customers, worried over the impact of tariffs and the economy, pull back on spending. The company said that it should be able to offset the majority of the impacts from tariffs.
Trump's threatened 145 per cent import taxes on Chinese goods were reduced to 30 per cent in a deal announced May 12, with some of the higher tariffs on pause for 90 days. Trump on Friday threatened a 50 per cent tax on all imports from the European Union as well as a 25 per cent tariff on smartphones unless those products are made in America.
But then on Sunday, Trump said that the US will delay implementation of a 50 per cent tariff on goods from the EU from June 1 until July 9 to buy time for negotiations with the bloc.
Macy's executives emphasized in March during the last earnings call that the company is facing lots of unpredictability given ever-changing tariff policies. But the company is focusing on what it can control and zeroing in on improving its merchandise and services.
Company executives told analysts on the earnings call in March that Macy's has been working with its suppliers to increase variety and reduce redundant styles, while adding more exclusive offerings. It's also focusing on improving its store label brand. (AP) GRS
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