Macy’s on Wednesday slashed its annual profit forecast and warned of incoming price hikes to offset President Trump’s hefty tariffs.
The legacy department store chain now expects adjusted earnings per share of $1.60 to $2 in 2025 — down from its previous forecast of $2.05 to $2.25.
Macy’s CEO Tony Spring told CNBC about 15 cents to 40 cents per share of that forecast drop is due to the tariffs.
The company also nodded to challenges from a slowdown in consumer spending and more competitive promotions and discounts across the retail industry.
“(Higher) pricing is working its way into the system slowly,” Spring said during a post-earnings call.
“That’s why we have taken a more cautious approach to our outlook for the year.”
He told CNBC the retailer will be “surgical” about its pricin