Macy’s Inc (NYSE:M) has revised downward its full-year 2025 earnings and adjusted EBITDA margin guidance, citing the effects of tariffs, softer consumer discretionary spending, and intensified promotional competition. Nevertheless, the company’s first-quarter results surpassed analyst expectations.
Following the report, Macy’s shares rose over 1% in premarket trading as of 11:07 GMT.
The department store now forecasts earnings per share (EPS) in the range of $1.60 to $2.00 for the year, lowered from the previous estimate of $2.05 to $2.25. This updated outlook falls short of the $1.93 consensus estimate.
Macy’s maintained its net sales projection at $21 billion to $21.4 billion, consistent with the consensus of $21.05 billion.
Adjusted EBITDA margin guidance was also reduced to between 7.4% and 7.9%, down from 8.4% to 8.6%. Meanwhile, core adjusted EBITDA margin is now expected in the range of 7.0% to 7.5%, compared to the previous forecast of 8.0% to 8.2%.
The company continues to anticipate comparable sales for its ongoing business to decline roughly 2% to remain flat.
“The company has revised its annual outlook based on current information to account for several factors including: initial and current tariffs; some moderation in consumer discretionary spending; and a heightened competitive promotional landscape,” Macy’s stated.
“Despite these challenges, the company is confident that its strong financial position, diverse brand and category offerings, and range from off-price to luxury provide flexibility to adapt to these changes,” the release added.
For the first quarter, Macy’s reported adjusted EPS of $0.16, beating the $0.14 estimate.
Revenue totaled $4.6 billion, surpassing the $4.4 billion consensus.
Comparable sales decreased 1.2% on an owned-plus-licensed-plus-marketplace basis, while owned sales fell 2%, outperforming the anticipated 4.2% decline. Gross margin remained steady year-over-year at 39.2%, slightly above expectations.