Fannie Mae, Freddie Mac shares tumble after conservatorship comments
Investing.com -- Macy’s Inc (NYSE:M) lowered its full-year 2025 outlook for earnings and adjusted EBITDA margin outlook to reflect the impact of tariffs, softer consumer discretionary spending, and increased promotional competition. The company’s Q1 results came ahead of estimates.
Shares in Macy’s were up more than 1% in premarket trading after the report as of 11:07 GMT.
The department store chain now expects earnings per share (EPS) between $1.60 and $2.00 for the year, down from a prior range of $2.05 to $2.25. The revised outlook comes in below the consensus estimate of $1.93.
The retailer maintained its net sales forecast at $21 billion to $21.4 billion, in line with the $21.05 billion estimate.
Adjusted EBITDA margin guidance was also cut to 7.4%–7.9% from 8.4%–8.6%, while core adjusted EBITDA margin is now expected between 7.0% and 7.5%, down from 8.0% to 8.2%.
Macy’s continues to project comparable sales for its go-forward business to decline by about 2% to flat.
"The company has revised its annual outlook based on current information to account for several factors including: initial and current tariffs; some moderation in consumer discretionary spending; and a heightened competitive promotional landscape," Macy’s said in the release.
“Despite these challenges, the company is confident that its strong financial position, diverse brand and category offerings, and range from off-price to luxury provide flexibility to adapt to these changes," it added.
For the first quarter, Macy’s reported adjusted EPS of $0.16, topping expectations of $0.14.
Revenue reached $4.6 billion, ahead of the $4.4 billion consensus.
Comparable sales declined 1.2% on an owned-plus-licensed-plus-marketplace basis, while sales on an owned basis fell 2%, beating the expected 4.2% drop. Gross margin held steady year-over-year at 39.2%, slightly above estimates.