Macy's, the largest department store chain in the United States, has significantly lowered its earnings outlook for this year, reflecting the impact of tariffs imposed by the Donald Trump administration.
On May 28 (local time), Macy's announced in its first-quarter earnings release that it would revise its adjusted earnings per share forecast for this year downward from the previous range of $2.05?$2.25 to $1.60?$2.00. The company explained that this downward revision was due to tariff increases, expanded promotional activities, and a slight slowdown in discretionary consumer spending. Each of these factors contributed independently to the revised outlook.
Tony Spring, CEO of Macy's, stated in an interview with CNBC following the earnings release that 15 to 40 cents of the downward adjustment in the earnings per share forecast was attributable to the impact of tariff increases. He said, "We have to address both demand-side and cost-side increases," and added, "We are preparing for various scenarios to understand what the reality will be."
Macy's also indicated that the tariff increases could lead to higher prices for some products. Regarding this, CEO Spring said, "We can't take a one-size-fits-all approach," explaining, "There will be products that remain at the same price as a year ago, but there will also be selectively higher prices for certain items."
Macy's, which opened in New York in 1858, once operated more than 800 stores. However, it has struggled in recent years as it failed to adapt quickly to the rise of discount retailers and changes in consumer behavior. Macy's previously announced plans to close 150 underperforming stores across the United States by early 2027.
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