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Macy’s Inc. (M) stock fell over 3% at the opening bell on Wednesday as the company slashed its earnings guidance for fiscal year 2025 due to concerns that President Donald Trump’s tariff war could adversely impact its bottom line.
Macy’s CEO Tony Spring doubled down on the company’s new turnaround strategy, saying its first-quarter (Q1) performance shows the firm is on the right path amid a growing macroeconomic uncertainty due to Trump’s tariff war.
However, the departmental store slashed its guidance for the fiscal year.
Macy’s now expects its adjusted earnings per share (EPS) for 2025 to be between $1.60 and $2.00, down from its previous estimate of $2.05 and $2.25.
It added that Trump’s tariffs would have an adverse impact of $0.10 to $0.25 on its EPS.
Macy’s adjusted EPS came in at $0.16 in Q1, slightly ahead of an estimated $0.15 but lower than the $0.27 EPS that it reported in the same period a year earlier.
The retail chain’s revenue during the quarter stood at $4.6 billion, beating a Wall Street consensus of $4.43 billion, but below the $4.85 billion it reported during the year-ago period.
The company said comparable sales during the quarter were down 2% on an owned basis, and down 1.2% on an owned-plus-licensed-plus-marketplace basis, coming in better than its estimates. Macy’s CEO Spring credited this to the company’s recent strategic initiatives.
“We continued to execute against our Bold New Chapter strategy during the quarter, scaling key initiatives that improved our customer experience and contributed to stronger-than-expected performance across all three of our nameplates," said Spring.
Macy’s stock has declined 31.25% year-to-date and 42.89% over the past 12 months.
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