Macy's Inc. saw its stock plummet 5.11% in the pre-market session on Thursday, as the iconic department store chain issued a disappointing outlook for fiscal 2025, citing softening consumer demand and the impact of tariffs on Chinese imports.
The retailer forecast its annual sales for 2025 to range between $21 billion and $21.4 billion, falling short of Wall Street's expectations of $21.81 billion. Macy's also projected its adjusted earnings per share for the year to be in the range of $2.05 to $2.25, missing analysts' estimates of $2.31 per share.
The weaker guidance reflects the ongoing challenges faced by retailers as consumers become increasingly cautious with their spending on apparel and accessories amid economic uncertainty. Moreover, the newly announced tariffs on goods sourced from China are expected to further strain household budgets, potentially deterring consumers from making discretionary purchases.
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