Macy's recently reported its fourth-quarter earnings, revealing a net income of $342 million, or $1.21 per share, and adjusted earnings per share (EPS) of $1.80, beating analysts' forecasts of $1.54. Despite this earnings surprise, sales fell by 4.3% to $7.77 billion from $8.12 billion in the previous year. Notably, Bloomingdale's and Bluemercury showed strong performance with comparable sales growth of 6.5% and 6.2%, respectively, whereas Macy's main stores saw a 1.9% decline.

Looking ahead, Macy's projects its fiscal year 2025 net sales to range between $21.0 billion and $21.4 billion, with an adjusted EPS between $2.05 to $2.25. The company anticipates a comparable sales drop of up to 2%, amid hurdles like inflation and new trade tariffs. Strategies include closing 150 stores by 2026 and boosting growth in promising locations and smaller-format stores. Enhancing merchandise variety and its own store labels are key focuses, aiming to draw in budget-focused shoppers.

Following the earnings announcement, Macy's shares fell nearly 4.6% in premarket trading. As Reuters noted, analysts express concerns about the effects of tariffs and inflation on both consumer spending and the company's profit margins. Currently, Macy's stock sits at $12.04, experiencing a slight change of $0.50 from its previous close.