Latest news with #TonySpring
Yahoo
4 days ago
- Business
- Yahoo
Why Macy's, Inc. (M) Crashed On Monday
We recently published a list of . In this article, we are going to take a look at where Macy's, Inc. (NYSE:M) stands against other worst performers on Monday. Macy's extended its losing streak to a fourth consecutive day on Monday, shedding another 4.79 percent to finish at $11.32 apiece as investors continued to dispose of shares following news that it would raise its prices across its stores to offset higher tariffs. Although Macy's, Inc. (NYSE:M) followed suit of other retailers that have previously guided higher prices, the possibility of lower demand for its products dampened investor sentiment. A customer in a store trying on fashionable apparel and accessories for purchase. 'There are going to be items that are the same price as they were a year ago. There [are] going to be, selectively, items that may be more expensive, and there are items that we might not carry because the pricing doesn't merit the quality or the perceived value by the consumer,' Macy's, Inc. (NYSE:M) CEO Tony Spring said in an interview with CNBC following the company's first quarter earnings results. He added that the company is actively reducing its exposure to Chinese imports through renegotiating supplier contracts, as well as cancelling and delaying orders that do not meet their value criteria. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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
30-05-2025
- 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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Fibre2Fashion
29-05-2025
- Business
- Fibre2Fashion
US' Macy's reaffirms FY26 sales outlook, lowers profit forecast
American departmental store of fashion clothing and accessories, Macy's Inc, has reaffirmed its full fiscal 2026 (FY26) net sales guidance, projecting between $21 billion and $21.4 billion, unchanged from the March 6 outlook. Comparable owned-plus-licensed-plus-marketplace sales are expected to decline by approximately 2 per cent to 0.5 per cent versus 2024, while the go-forward business is forecast to see a sales change ranging from a 2 per cent decline to flat—also unchanged. However, the company revised its profitability expectations downward. Adjusted EBITDA as a percentage of total revenue is now projected between 7.4 per cent and 7.9 per cent, compared to the earlier range of 8.4 per cent to 8.6 per cent. Macy's has reaffirmed its FY26 net sales forecast of $21â€'$21.4 billion but lowered its profit outlook. Q1 FY25 net sales fell 5.1 per cent YoY to $4.6 billion, while adjusted EPS reached $0.16. Bloomingdale's and Bluemercury saw sales growth. Other revenue rose 26 per cent to $194 million. CEO Tony Spring expressed confidence in the strategy driving Macy's return to profitable growth. Similarly, core adjusted EBITDA margin has been lowered to 7-7.5 per cent from the previous 8-8.2 per cent. The adjusted diluted earnings per share (EPS) guidance have also been reduced to a range of $1.6 to $2, down from $2.05 to $2.25. These figures reflect the impact of FY24 store closures, notably Macy's nameplate locations, which had contributed approximately $700 million in annual net sales, Macy's said in a press release. Meanwhile, Macy's achieved net sales decreased 5.1 per cent year-over-year (YoY) to $4.6 billion in the first quarter (Q1) of fiscal 2025 (FY25) ended May 3, 2025, exceeding the company's prior guidance range. The company's comparable sales were down 2 per cent on an owned basis. It reported GAAP diluted EPS of $0.13, adjusted diluted EPS of $0.16, above the company's prior guidance range. The net income of the company in Q1 was $38 million, or 0.8 per cent of total revenue, and adjusted net income was $46 million, or 1 per cent of total revenue. The gross margin rate of 39.2 per cent was flat, reflecting improved merchandise margin offset by higher delivery expense as a percent of net sales. Bloomingdale's net sales were up 2.6 per cent YoY, with comparable sales up 3 per cent on an owned basis and up 3.8 per cent on an owned-plus-licensed-plus-marketplace basis. Bluemercury net sales were up 0.8 per cent and comparable sales were up 1.5 per cent on an owned basis. Comparable sales at the 125 Reimagine locations declined by 1.3 per cent on an owned basis and by 0.8 per cent on an owned-plus-licensed basis. Other revenue in Q1 rose by $40 million, or 26 per cent, reaching $194 million. This included a $37 million increase in credit card net revenues, up 31.6 per cent to $154 million, and an $3 million rise in net revenue from Macy's media network, which grew 8.1 per cent to $40 million. The selling, general and administrative (SG&A) expense of $1.9 billion increased $2 million. 'We continued to execute against our bold new chapter strategy during the quarter, scaling key initiatives that improved our customer experience and contributed to stronger than expected performance across all three of our nameplates,' said Tony Spring, chairman and chief executive officer of Macy's, Inc . 'Our first quarter results give us confidence that we have the right strategy and team in place to navigate the current environment while we continue to invest in our customer on the path to returning Macy's, Inc to sustainable profitable growth.' Fibre2Fashion News Desk (SG)
Daily Mail
29-05-2025
- Business
- Daily Mail
America's favorite department store latest to warn that worst case tariff scenario is coming true
Macy's has joined a growing list of retailers raising prices as the impact of President Trump's tariffs reverberates across the retail sector. The struggling department store chain said it will boost prices on select products, reduce its reliance on Chinese suppliers, and cancel or delay certain orders to cope with the new economic reality. CEO Tony Spring explained the affected orders are ones 'where the value proposition is just not where it needs to be.' 'I think it's important to understand that we are not just broadly increasing price,' Spring said. 'We're being incredibly surgical about the situation with tariffs.' Roughly 20 percent of Macy's products sold last year were from China, including bestsellers like Nike Jordans and Adidas Samba. Those items, in particular, could see steep price hikes. The tariff turmoil follows Macy's announcement that it will shutter 150 stores by the end of 2026, including 66 closures this year. Like many department stores, Macy's has been suffering from dwindling sales amid the stratospheric rise of online rivals and the demise of America's suburban malls. Some of those locations that shut recently include its 51-year-old Massapequa location and its iconic store in Center City, Philadelphia. Macy's had been working to make up for its disappointing holiday sales while dealing with a scandal involving one of their employees who hid over $150 million in delivery expenses before the closures. 'Increasing prices isn't an ideal solution for Macy's, if only because sales are already under pressure and it doesn't want to dilute the value it offers to consumers,' Neil Saunders from GlobalData told 'However, it is going to be very selective about how and where it increases prices, so I don't expect everything will go up and it will still try to offer good value for money on key items.' The company is trying to rebound after disappointing holiday sales and a recent scandal involving an employee who allegedly hid $150 million in delivery costs. Its most recent earnings report showed $4.6 billion in net sales and a 2% dip in comparable sales. While Macy's is working to reach new heights, other retailers are busy dealing with backlash over their decisions to raise prices. Around 20 percent of products sold at Macy's at the end of its last fiscal year were from China Nike, Pumas, and Adidas all confirmed that it would hike product costs on select items as a result of the tariffs. Walmart left shoppers furious after confirming its costs would rise, and now some products have nearly doubled in price. It also forced the retailer to slash about 1,500 US jobs as part of its restructuring plan in response to the hikes. Other retailers in hot water over price hikes include Best Buy and Target.
Miami Herald
29-05-2025
- 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.
