Macy’s posts strong Q4 results but a reserved outlook reflects uncertainty around tariffs, Iran war

Macy’s Reports Strong Fourth Quarter Profits Despite Economic Uncertainties

NEW YORK (AP) — Macy’s announced better-than-expected profits in the fourth quarter as comparable sales continued to rise. The department store attributed its success to a revamped merchandise strategy and enhanced customer service, leading to increased spending by shoppers.

While Macy’s offered a positive outlook for sales in the coming year, CEO Tony Spring expressed caution regarding profit forecasts. Spring cited external economic volatility, including uncertainty surrounding President Trump’s tariffs and the conflict in Iran, which has caused energy prices to surge.

Spring acknowledged the challenges posed by these external factors, stating, “Sitting here today, there’s more unknown than there is known.” Despite these uncertainties, Macy’s shares rose by approximately 3.9% in morning trading.

Under Spring’s leadership, Macy’s has focused on modernizing its stores, improving customer service, and offering exclusive merchandise to differentiate itself in the competitive retail landscape. Bloomingdale’s, a subsidiary of Macy’s, achieved record holiday sales performance, outperforming industry expectations.

However, like its competitors, Macy’s is facing challenges from global trade disruptions, higher tariffs, and shifting consumer spending patterns. The ongoing conflict in Iran has further exacerbated these challenges, leading to increased gasoline prices and supply chain disruptions.

To mitigate the impact of rising costs, Macy’s may need to pass on some of these expenses to consumers in the future. Despite these uncertainties, Macy’s remains committed to enhancing its customer experience and driving sales growth.

For the fourth quarter, Macy’s reported net income of $507 million, or $1.84 per share, representing a significant increase from the previous year. Although net sales slightly declined due to store closures, comparable sales rose by 1.8%.

Looking ahead, Macy’s expects net sales to range from $21.4 billion to $21.65 billion for the current year, with comparable sales projected to be flat or slightly positive. Earnings per share are forecasted to be in the range of $1.90 to $2.10.

Despite economic uncertainties, Macy’s remains optimistic about its future growth prospects and is focused on adapting to changing market conditions to drive continued success in the retail industry.