Macy’s Inc. (NYSE: M) Q1 2025 Earnings Call | 05/28/2025

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Macy’s Inc. reported Q1 2025 results on May 28, 2025, surpassing Wall Street expectations for both revenue and earnings, but lowering its full-year profit outlook as tariffs and shifting consumer spending patterns weigh on margins. Net sales for the quarter were $4.6 billion, down 5.1% year-over-year due to store closures, but ahead of guidance and analyst forecasts. Comparable sales declined 2.0% on an owned basis and 1.2% on an owned-plus-licensed-plus-marketplace basis, with strength at Bloomingdale’s and Bluemercury partially offsetting weakness at the Macy’s brand. Adjusted diluted earnings per share (EPS) came in at $0.16, beating the forecasted $0.14 and marking a positive surprise of 14%. GAAP diluted EPS was $0.13. Net income for the quarter was $38 million. The company’s stock responded positively to the earnings beat, rising over 4% in premarket trading, though shares remain volatile amid ongoing sector pressures. Macy’s continues to execute its “Bold New Chapter” strategy, focusing on store optimization, new brand launches, and investments in customer experience. The company’s Reimagine 125 stores outperformed the broader Macy’s fleet, while Bloomingdale’s and Bluemercury delivered consistent positive comparable sales. However, the company is facing significant headwinds from tariffs—about 20% of Macy’s products are sourced from China—prompting plans for select price increases and product discontinuations to offset rising costs. CEO Tony Spring noted that tariffs account for 15–40 cents of the revised annual EPS guidance. For fiscal 2025, Macy’s reaffirmed its annual net sales outlook of $21.0–$21.4 billion but cut its adjusted EPS forecast to $1.60–$2.00, down from previous guidance, citing tariffs, increased promotional activity, and a slight slowdown in discretionary spending. The company also announced a quarterly dividend of $0.1824 per share, payable July 1, 2025, representing a 6.14% yield at recent prices. Outlook: Macy’s expects continued pressure from tariffs and economic uncertainty, with ongoing store closures and workforce reductions across the retail sector. Management remains focused on cost control, price optimization, and strategic investments to drive long-term profitability and growth. The company’s multi-brand, multi-channel approach and ongoing store modernization are expected to help navigate a challenging environment. #Macys #M #EarningsCall #Q12025 #Retail #Tariffs #StoreClosures #Dividend #ProfitOutlook #Investing #InsideTicker