Macy's profit and sales slip impacting profit forecast for 2025

Macy’s experienced a decline in sales and profits in its first quarter, resulting in the department store trimming its profit projections for 2025. 

But the retail giant, which owns Bloomingdale’s and the Bluemercury cosmetics chain, topped most performance expectations for the first three months of 2025 and maintained its sales forecast for the year. 

Macy’s first quarter sales 

By the numbers:

According to the Associated Press, for the period ending May 3, Macy’s earned $38 million, or 13 cents per share. That compares with $62 million, or 22 cents per share, in 2024. 

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The company still anticipates 2025 sales in a range of $21 billion to $21.4 billion. It now expects full-year adjusted earnings between $1.60 and $2 per share. Its prior forecast was for an adjusted profit of $2.05 to $2.25 per share, the AP reported. 

The Associated Press noted that industry analysts projected full-year sales of $21.03 billion and an adjusted per-share profit of $1.91.

Will Macy’s sales be affected by tariffs?

Local perspective:

Macy’s and other retailers are managing the uncertainty with tariffs, while contending with consumers who are scaling back on spending.

The Associated Press reported that Macy's had roughly 20% of its products originate from China at the end of its last fiscal year. Private brands sourced 27% from China, down from 32% in 2024.

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Chairman and CEO Tony Spring said during Macy’s conference call on Wednesday that the company has a "good handle on the tariff-related costs," but is aware that the situation is constantly changing.

In a March earnings call, Macy’s executives said that the company is facing lots of unpredictability given ever-changing tariff policies and is focusing on what it can control and improve its merchandise and services, including updating its store label brand.