Macy's exceeded Q1 earnings expectations, but faces challenges from tariffs and cautious consumers.

From Yahoo Finance: 2025-05-28 06:55:00

Macy’s beats muted Q1 earnings estimates with revenue of $4.6B, exceeding analyst expectations. Same-store sales declined 1.2%, but outperformed estimates of a 3.85% decrease. CEO remains confident in current strategy. Adjusted EPS fell to $0.16, prompting revised earnings outlook of $1.60 to $2.00 due to tariffs and market conditions.

Macy’s faces challenges from falling consumer sentiment, rising costs due to tariffs, and e-commerce trends. Rejected $6.9B bid last year, now trading at $12. Plans to close 66 unprofitable stores this year. Focus on foot traffic, assortment, and pricing crucial for turnaround. Model requiring coupons may hurt long-term.

Activist investors may return to Macy’s, frustrated by stock performance. Stock trading in low teens, below previous potential. Macy’s needs new direction to save shareholders. Activist investor Arkhouse remains a shareholder but undecided on future moves. Uncertain future for Macy’s amid market challenges and investor pressures.



Read more at Yahoo Finance: Macy’s beats lowly earnings expectations as the retailer faces tariffs and cautious consumers