Macy’s surprises in first quarter, but cuts profit outlook as tariff costs seep in
May 28, 2025
Macy’s sales and profit slipped in its first quarter and the department store, citing more cautious customers and the impact that a trade war launched by the U.S., trimmed its profit forecast for 2025. The New York retailer, however, topped most performance expectations for the first three months of the year and maintained its annual sales forecast Wednesday. Macy’s CEO Tony Spring said that after seeing almost no price increases linked to tariffs in the first quarter, some “limited” price increases are appearing now, leading to the more cautious annual profit outlook. He said that the company is diversifying the origin of its products and will pull items when the math doesn’t work.
