Latest news with #Bloomingdale's
Yahoo
2 days ago
- Business
- Yahoo
Macy's CEO warns customers of a harsh change in stores
Macy's CEO warns customers of a harsh change in stores originally appeared on TheStreet. Macy's () , which owns Bloomingdale's and Bluemercury, is one of the few nostalgic mall retail giants that survived the Covid pandemic, a period that caused several retailers to either file for bankruptcy or go out of business. After surviving the pandemic, Macy's is now battling a startling shift in customer behavior. In Macy's first-quarter earnings report for 2025, it revealed that its comparable store sales declined by 2% year-over-year during the quarter. 💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵 The shrinkage in sales contributed to the company earning a total revenue of roughly $4.7 billion during the quarter, which is about 4% lower than what it earned during the same time period last Macy's struggles with lower sales, the average number of visits customers made to each of its locations dipped by 0.2%, according to recent data from During an earnings call on May 28, Macy's CEO Tony Spring said that while the company performed strongly in March and April, its performance in February lagged due to unseasonable weather. He also said that despite recent changes in the economy, consumers (with both low and high income levels) continue to shy away from making discretionary purchases. 'Discretionary spending is something that I think we've seen from the middle of last year kind of forward, that as inflation subsided a little bit, as gas prices became more affordable, the consumer still felt the pinch of other costs that were rising,' said Spring. 'And so, we're maintaining our aggressive position in trying to make sure that we're capturing our fair share. I would say at the high end, the consumer is not obviously pressured, but they remain choiceful, and they don't like uncertainty.'In order to help combat this concerning trend, he said that Macy's will continue to offer 'newness' to customers. 'So the consumer remains under pressure but is responding to newness, is responding to good value, is responding to improved presentation, is responding to inspiring marketing,' said Spring. 'I think we can control some of these elements. I can't control how much discretionary spend the consumer is willing to lay out, but I can control the quality of our execution.' As shoppers become more cautious about making discretionary purchases, Spring also warned that customers may soon see higher prices in Macy's stores due to tariffs (taxes companies pay to import goods from overseas). Last month, President Donald Trump imposed a 10% baseline tariff on all countries and paused reciprocal tariffs. The pause on reciprocal tariffs will end in July, and as a result, roughly 60 countries will soon see increased tariff rates. This will likely have a domino effect, resulting in U.S. consumers seeing higher prices for goods. Spring said that Macy's is 'slowly' implementing price increases in its stores, highlighting that the company will be 'aggressive on pricing' and will remain 'very competitive.' 'I would say the pricing is working its way into the system slowly,' said Spring. 'So you certainly saw little to no pricing in the first quarter. You're seeing some limited pricing in the second quarter.' More Retail: Costco quietly plans to offer a convenient service for customers T-Mobile pulls the plug on generous offer, angering customers Kellogg sounds alarm on unexpected shift in customer behavior During the earnings call, Macy's Chief Financial Officer Adrian Mitchell emphasized that the company isn't solely using price increases to combat the threat of tariffs but is also being 'incredibly surgical' about how it handles them. This includes negotiating with vendors to obtain brands and styles that customers are interested in buying. It has also shifted more of its production away from China, which is one of the countries on which Trump imposed high tariff rates. Macy's has even canceled and delayed certain orders that couldn't be obtained from vendors at a fair price. 'We've been able to gain some vendor discounts, which has been helpful to us, but we're absorbing some of that price as well,' said Mitchell. 'So we're making selective price increase(s) in selective brands, selective categories, because we believe the value equation for the customer is still very relevant.' The move from Macy's comes at a time when many consumers are changing their spending habits to prepare for the impact of Trump's tariffs. According to a recent survey from Harris Poll and Bloomberg News, 56% of Americans said their household finances would be better off if Trump's tariffs were never enforced. Also, three in five Americans said they are cutting back their spending due to concerns about a potential recession. Additionally, more than 70% said they are eating out less, and 57% said they are spending less on CEO warns customers of a harsh change in stores first appeared on TheStreet on May 29, 2025 This story was originally reported by TheStreet on May 29, 2025, where it first appeared. 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Miami Herald
4 days ago
- Business
- Miami Herald
Macy's CEO warns customers of a harsh change in stores
Macy's (M) , which owns Bloomingdale's and Bluemercury, is one of the few nostalgic mall retail giants that survived the Covid pandemic, a period that caused several retailers to either file for bankruptcy or go out of business. After surviving the pandemic, Macy's is now battling a startling shift in customer behavior. In Macy's first-quarter earnings report for 2025, it revealed that its comparable store sales declined by 2% year-over-year during the quarter. Don't miss the move: Subscribe to TheStreet's free daily newsletter The shrinkage in sales contributed to the company earning a total revenue of roughly $4.7 billion during the quarter, which is about 4% lower than what it earned during the same time period last year. Related: Ross Stores makes drastic decision customers will see in stores As Macy's struggles with lower sales, the average number of visits customers made to each of its locations dipped by 0.2%, according to recent data from During an earnings call on May 28, Macy's CEO Tony Spring said that while the company performed strongly in March and April, its performance in February lagged due to unseasonable weather. He also said that despite recent changes in the economy, consumers (with both low and high income levels) continue to shy away from making discretionary purchases. "Discretionary spending is something that I think we've seen from the middle of last year kind of forward, that as inflation subsided a little bit, as gas prices became more affordable, the consumer still felt the pinch of other costs that were rising," said Spring. "And so, we're maintaining our aggressive position in trying to make sure that we're capturing our fair share. I would say at the high end, the consumer is not obviously pressured, but they remain choiceful, and they don't like uncertainty." Related: Home Depot struggles to reverse concerning customer behavior In order to help combat this concerning trend, he said that Macy's will continue to offer "newness" to customers. "So the consumer remains under pressure but is responding to newness, is responding to good value, is responding to improved presentation, is responding to inspiring marketing," said Spring. "I think we can control some of these elements. I can't control how much discretionary spend the consumer is willing to lay out, but I can control the quality of our execution." As shoppers become more cautious about making discretionary purchases, Spring also warned that customers may soon see higher prices in Macy's stores due to tariffs (taxes companies pay to import goods from overseas). Last month, President Donald Trump imposed a 10% baseline tariff on all countries and paused reciprocal tariffs. The pause on reciprocal tariffs will end in July, and as a result, roughly 60 countries will soon see increased tariff rates. This will likely have a domino effect, resulting in U.S. consumers seeing higher prices for goods. Spring said that Macy's is "slowly" implementing price increases in its stores, highlighting that the company will be "aggressive on pricing" and will remain "very competitive." "I would say the pricing is working its way into the system slowly," said Spring. "So you certainly saw little to no pricing in the first quarter. You're seeing some limited pricing in the second quarter." More Retail: Costco quietly plans to offer a convenient service for customersT-Mobile pulls the plug on generous offer, angering customersKellogg sounds alarm on unexpected shift in customer behavior During the earnings call, Macy's Chief Financial Officer Adrian Mitchell emphasized that the company isn't solely using price increases to combat the threat of tariffs but is also being "incredibly surgical" about how it handles them. This includes negotiating with vendors to obtain brands and styles that customers are interested in buying. It has also shifted more of its production away from China, which is one of the countries on which Trump imposed high tariff rates. Macy's has even canceled and delayed certain orders that couldn't be obtained from vendors at a fair price. "We've been able to gain some vendor discounts, which has been helpful to us, but we're absorbing some of that price as well," said Mitchell. "So we're making selective price increase(s) in selective brands, selective categories, because we believe the value equation for the customer is still very relevant." The move from Macy's comes at a time when many consumers are changing their spending habits to prepare for the impact of Trump's tariffs. According to a recent survey from Harris Poll and Bloomberg News, 56% of Americans said their household finances would be better off if Trump's tariffs were never enforced. Also, three in five Americans said they are cutting back their spending due to concerns about a potential recession. Additionally, more than 70% said they are eating out less, and 57% said they are spending less on entertainment. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Boston Globe
4 days ago
- Business
- Boston Globe
Macy's surprises in first quarter, but cuts profit outlook as tariff costs seep in
'I think it's important to understand that we are not just broadly increasing price,' Spring said in a conference call Wednesday. 'We're being incredibly surgical about the situation with tariffs.' The company is diversifying the origin of its products as well, and will pull items when the math doesn't work, he said. Advertisement About 20 percent of Macy's products came from China at the end of its last fiscal year. Private brands sourced approximately 27 percent from China, down from 32 percent last year. 'With the recent announcement of these tariffs, we've renegotiated orders with suppliers,' Spring said. 'We've canceled or delayed orders where the value proposition is just not where it needs to be.' Shares rose 1 percent Wednesday. Sales at Macy's, which also owns upscale Bloomingdale's and the Bluemercury cosmetics chain, dropped to $4.79 billion, from $5 billion a year earlier. That's better than the $4.42 billion that analysts polled by FactSet expected. Comparable sales, which include those online, dipped 2 percent. There was comparable store sales growth at Bloomingdale's and Bluemercury. Advertisement Neil Saunders, managing director of GlobalData, said it wasn't a bad quarter for Macy's, particularly as the retailer closes underperforming locations. Macy's said previously that it would close 66 stores, mostly in the first quarter. 'The 2.0 percent dip in comparable sales is below market growth but is not entirely unexpected,' Saunders wrote. 'It is also, barring the robust holiday quarter, a somewhat better performance than Macy's delivered across most of the last fiscal year.' For the period ended May 3, Macy's earned $38 million, or 13 cents per share. That compares with $62 million, or 22 cents per share, a year ago. Stripping out one time charges, earnings were 16 cents per share, which topped Wall Street's estimate by a penny. The company stuck by its 2025 sales forecast which ranged from $21 billion to $21.4 billion. But it now expects full-year adjusted earnings between $1.60 and $2 per share. Its prior forecast was for an adjusted profit of $2.05 to $2.25 per share. Industry analysts had been projecting full-year sales of $21.03 billion and an adjusted per-share profit of $1.91. Macy's and other retailers are wrestling with uncertainty about tariffs which are making it difficult to plan. The same goes for many American consumers who have are growing increasingly uncomfortable about the US economy and watching their spending. American Eagle Outfitters withdrew its annual financial outlook earlier this month citing 'macro uncertainty' and said it would write down $75 million in spring and summer merchandise. Ross Stores withdrew its forecast last week. Walmart, the nation's largest retailer, got a public scolding from President Trump this month after it said that it has already raised prices on some items and would have to do so again this summer. Trump told the retail giant that it should 'eat' the additional costs. Advertisement Target's sales fell more than expected in the first quarter and it warned they will continue to flag this year. Home Depot, too, said that it will eat some of the costs but that some goods heavily impacted by the trade war will no longer be on shelves. Trump's threatened 145 percent import taxes on Chinese goods were reduced to 30 percent in a deal announced May 12, with some of the higher tariffs on pause for 90 days. Trump on Friday threatened a 50 percent tax on all imports from the European Union as well as a 25 percent tariff on smartphones unless they're made in America. On Sunday, however, Trump said that the United States will delay implementation of a 50 percent tariff on goods from the EU until July 9 to negotiate. Spring, Macy's CEO, said there has been some success with vendors on lowering prices, but the department store is absorbing some costs as well. 'We're making selective price increase in selective brands, selective categories, because we believe the value equation for the customer is still very relevant,' Spring said. 'So some of the impact on our gross margin this year is going to be around the tariffs, but we're also investing in getting market share because we really do believe as we get into the back half of the year, that price value dimension is going to be very critical.'
Yahoo
4 days ago
- Business
- Yahoo
M Q1 Earnings Call: Macy's Lowers Full-Year Profit Outlook Amid Mixed Consumer Trends
Department store chain Macy's (NYSE:M) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 4.1% year on year to $4.79 billion. Its non-GAAP profit of $0.16 per share was in line with analysts' consensus estimates. Is now the time to buy M? Find out in our full research report (it's free). Revenue: $4.79 billion (4.1% year-on-year decline) Adjusted EPS: $0.16 vs analyst estimates of $0.15 (in line) Management lowered its full-year Adjusted EPS guidance to $1.80 at the midpoint, a 16.3% decrease Operating Margin: 2%, in line with the same quarter last year Locations: 679 at quarter end, down from 718 in the same quarter last year Same-Store Sales fell 2% year on year, in line with the same quarter last year Market Capitalization: $3.35 billion Macy's first quarter results reflected the impact of ongoing consumer caution and the company's efforts to adapt to shifting demand patterns. CEO Tony Spring pointed to the outperformance of the reimagined 125 Macy's locations, as well as momentum in Bloomingdale's and Blue Mercury, as evidence that the retailer's 'Bold New Chapter' strategy is gaining traction. Management discussed improvements in in-store experience, product assortment, and inventory allocation, with Spring noting, 'Customers appreciate our renewed emphasis on the shopping experience and a commitment to providing relevant fashion and newness at a compelling value.' The quarter was also shaped by the closure of underperforming stores and continued discipline in inventory management. Looking ahead, Macy's leadership signaled that increased promotional intensity, ongoing tariff uncertainty, and a cautious consumer are key factors shaping the company's outlook. Spring stated that the company is 'being disciplined with our inventory commitments' and remains flexible to adjust to demand shifts, highlighting ongoing negotiations with vendors to limit the impact of tariffs. CFO Adrian Mitchell warned that gross margins will be pressured by higher delivery expenses and selective price increases in response to tariffs, while management anticipates consumers will become 'more choiceful as the year progresses.' The company plans to reinvest operational savings into customer-facing initiatives but is also preparing for a more competitive retail environment for the remainder of the year. Management attributed first quarter performance to strategic investments in store experience, selective product launches, and ongoing cost discipline, while navigating macroeconomic and industry headwinds. Reimagined store progress: The reimagined 125 Macy's stores showed better comp performance than the broader fleet, supported by improved merchandising, additional staffing, and curated product assortments. These initiatives are designed to differentiate Macy's in a challenging retail landscape. Luxury segment resilience: Both Bloomingdale's and Blue Mercury delivered positive comparable sales, benefiting from targeted brand launches, exclusive partnerships, and a refreshed store experience. Expansion of Bloomingdale's outlet and small-format 'Bloomys' concepts is allowing Macy's to reach new markets and customer segments. Off-price and marketplace growth: The Backstage off-price concept outperformed full-line stores, while Macy's marketplace platform (which allows third-party sellers) achieved approximately 40% growth in gross merchandise value. These channels help Macy's capture price-sensitive shoppers and add assortment flexibility. Supply chain modernization: The company continued to streamline operations by leveraging generative AI for inventory allocation and improving distribution efficiency. Management highlighted that these actions have contributed to maintaining flat merchandise margins despite growing delivery costs. Tariff mitigation efforts: Macy's actively reduced its sourcing exposure to China, renegotiated supplier contracts, and implemented selective price increases to offset new tariffs. Management estimates a 20 to 40 basis point impact on annual gross margin from tariffs, but noted the situation remains fluid. Macy's expects ongoing consumer caution, heightened competition, and tariff impacts to influence revenue and profitability in the coming quarters. Consumer spending uncertainty: Management anticipates that consumers will remain cautious, leading to a more promotional retail environment. Guidance assumes no rebound in international tourism and that consumers will continue to prioritize value, prompting Macy's to be flexible with inventory and pricing decisions. Tariff and cost headwinds: The company expects tariffs on imported goods, particularly from China, to pressure gross margins by 20 to 40 basis points. Macy's is mitigating these effects through vendor negotiations, selective price increases, and strategic sourcing shifts, but acknowledges that the overall cost environment remains unpredictable. Strategic reinvestment and store optimization: Macy's plans to reinvest savings from closed stores and operational efficiencies into customer-facing initiatives, including refreshed store formats and expanded product offerings. Management believes these investments are critical for gaining market share amid industry disruption and changing consumer behavior. In the quarters ahead, the StockStory team will closely monitor (1) the trajectory of comparable sales at reimagined Macy's locations and luxury banners, (2) Macy's ability to offset tariff-related margin pressures through pricing and sourcing actions, and (3) progress in shifting consumer sentiment and discretionary spending. We will also track execution on store optimization and new merchandising strategies as key indicators of sustained recovery. Macy's currently trades at a forward P/E ratio of 6.3×. Should you double down or take your chips? Find out in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Macy's Cuts Outlook Despite Q1 Beat Amid Trump Tariff Pressure
Macy's (M, Financials) lowered its full-year profit forecast on Wednesday, attributing the cut to increased promotional activity and higher tariffs under President Donald Trump's administration. Despite the reduced guidance, the retailer beat Wall Street's expectations for its fiscal first-quarter earnings and revenue. Adjusted earnings per share came in at $0.16, ahead of the $0.14 analysts had expected, while revenue reached $4.60 billion, topping the $4.50 billion consensus. Net income for the quarter fell to $38 million, or $0.13 per share, from $62 million, or $0.22 per share, in the year-ago period. For fiscal 2025, Macy's now anticipates adjusted earnings per share between $1.60 and $2.00, down from a previous range of $2.05 to $2.25. The company reaffirmed its full-year revenue forecast of $21 billion to $21.4 billion, which would represent a decline from the $22.29 billion reported for the prior fiscal year. Macy's said the outlook revision reflects the impact of macroeconomic uncertainty, volatile consumer demand, and pricing pressure from tariffs and promotions. The company continues to implement its multi-year turnaround strategy, which includes shuttering roughly 150 underperforming namesake stores and investing in higher-growth segments like Bloomingdale's and Bluemercury. Comparable sales at Macy's declined 2.1% year over year, though when excluding locations scheduled to close, the decline moderated to 1.9%. In contrast, Bloomingdale's reported a 3.8% increase in comparable sales, while Bluemercury posted a 1.5% gain. Among the 125 Macy's stores that have received operational upgrades under the First 50 initiative, comparable sales dropped just 0.8%, outperforming the broader Macy's portfolio. The revised guidance comes amid mounting economic uncertainty, with Macy's citing inconsistent signals from consumers and ongoing confusion around policy changes, especially tariffs. Shares of Macy's rose nearly 2% in premarket trading following the announcement. As of Tuesday's close, the stock was down 29% year to date, underperforming the broader S&P 500 index, which has gained around 1% during the same period. Investors are expected to focus on Macy's earnings call scheduled for 8 a.m. ET for further insights on its pricing strategy and tariff response. Explore insider trades for M. See Peter Lynch chart. This article first appeared on GuruFocus. Sign in to access your portfolio
