Key Points

- Macy's quarterly earnings of $0.16 per share surpass the Zacks Consensus Estimate of $0.14 per share
- The company cuts its profit outlook due to tariffs and promotions impacting its business
- Despite this, Macy's reports solid sales for the spring season
- Macy's stock rises 3% in premarket trading after earnings and revenue beat expectations
- The department store operator trims its fiscal-year profit guidance amid uncertainty

Macy's (M) exceeded expectations in their first quarter earnings report, with earnings of $0.16 per share, higher than the anticipated $0.14 per share according to Zacks. This is a decrease from the previous year's earnings of $0.27 per share. Despite this positive news, Macy's has adjusted its profit forecast due to challenges posed by global tariffs and a slowdown in consumer spending.

CNBC's Melissa Repko analyzed Macy's quarterly results on 'Squawk Box', shedding light on the company's decision to lower their full-year earnings guidance. This adjustment was made in response to the impact of tariffs and a slight moderation in consumer spending, though sales for the spring quarter saw a smaller decline than expected.

Investors reacted positively to Macy's performance, with the company's stock rising by 3% in premarket trading following the release of their earnings and revenue figures. Wall Street analysts were pleased with the results, as they surpassed their projections. Despite this positive momentum, Macy's has decided to reduce their profit outlook for the fiscal year as a precautionary measure.

President Donald Trump's tariff increases and higher promotional activities have influenced Macy's decision to cut their profit outlook for the year. The uncertainty surrounding tariffs and consumer spending habits led to the department store operator revising their annual profit forecast downwards. The challenges presented by these factors have prompted Macy's to exercise caution in their financial projections.

In conclusion, Macy's impressive performance in the first quarter, with earnings and revenue surpassing expectations, was tempered by the decision to revise their profit outlook for the year. The impact of tariffs and consumer behavior on the retail landscape have necessitated this adjustment, highlighting the need for strategic planning in a volatile market environment.

About M

Macy's, Inc., an omni-channel retail organization, operates stores, Websites, and mobile applications. The company sells a range of merchandise, such as apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. As of January 29, 2022, it operated 725 department stores in the District of Columbia, Puerto Rico, and Guam under the Macy's, Macy's Backstage, Market by Macy's, Bloomingdale's, Bloomingdale's The Outlet, Bloomies, and bluemercury brands. It also operates in Dubai, the United Arab Emirates, and Al Zahra, Kuwait under the license agreements. The company also operates as a beauty products and spa retailer. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy's, Inc. in June 2007. Macy's, Inc. was founded in 1830 and is based in New York, New York.

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