Macy's Inc. (M  ) on Wednesday revised its annual outlook on initial and current tariffs, some moderation in consumer discretionary spending, and a heightened competitive promotional landscape.

Macy's lowered fiscal 2025 adjusted earnings per share from $2.05-$2.25 to $1.60-$2.00 compared to the consensus of $1.93.

Still, the retail giant affirmed its 2025 sales guidance of $21 billion-$21.4 billion versus the consensus of $21.31 billion.

The company also lowered its core adjusted EBITDA expectation for 2025 from 8.0%-8.2% to 7.0%-7.5%.

The retailer reported net sales of $4.6 billion for the first quarter of 2025, down 5.1% year over year, beating the consensus of $4.50 billion.

Comparable sales were down 2.0% on an owned basis and 1.2% on an owned-plus-licensed-plus-marketplace basis.

Comparable owned-plus-licensed-plus-marketplace sales reflect sales growth at Bloomingdale's and Bluemercury, offset by a decline at Macy's.

Macy's go-forward business comparable sales were down 1.8% on an owned basis and down 0.9% on an owned-plus-licensed-plus-marketplace basis. By nameplate:

  • Macy's net sales were down 6.5%, including store closures, with comparable sales down 2.9% on an owned basis and 2.1% on an owned-plus-licensed-plus-marketplace basis.
  • Macy's go-forward business comparable sales were down 2.7% on an owned basis and 1.9% on an owned-plus-licensed-plus-marketplace basis. Reimagine 125 locations comparable sales were down 1.3% on an owned basis and down 0.8% on an owned-plus-licensed basis.
  • Bloomingdale's net sales were up 2.6%, with comparable sales up 3.0% on an owned basis and up 3.8% on an owned-plus-licensed-plus-marketplace basis.
  • Bluemercury net sales were up 0.8%, and comparable sales were up 1.5% on an owned basis.
The gross margin of 39.2% was flat, reflecting improved merchandise margin offset by higher delivery expense as a percent of net sales.

Macy's reported adjusted earnings of 16 cents per share, beating the consensus of 14 cents.

Core adjusted EBITDA was $308 million, down from $363 million a year ago.

For the second quarter of 2025, Macy's forecasts sales of $4.65 billion-$4.75 billion and adjusted earnings of 15 cents-20 cents per share compared to the consensus of $4.76 billion and 34 cents, respectively, as per data from Benzinga Pro.

Comparable sales are expected to be -1.5% to +0.5%, with core adjusted EBITDA of 6.0%-6.2%.

Price Action: M stock is up 2.57% at $12.35 during the premarket session at the last check Wednesday.