Macy’s has reported decreasing sales and a modest outlook for the upcoming year, citing additional tariffs and economic uncertainties.
For fiscal 2024, net sales dipped by 3.5% to $22.3 billion, while comparable sales were down by 2.0% and revenue fell by 7.9% to $713 million.
Additionally, in Q4 2024, the company saw its net sales drop by 4.3% to $7.8 billion, while comparable sales fell by 1.1% and revenue decreased by 6.3% to $239 million.
However, despite declining sales, the company achieved a net profit of $342 million compared to a $128 million net loss in the year prior.
Tony Spring, Macy’s CEO, said in an earnings call: “We are pleased with our accomplishments, but recognize there is still more work to be done.”
“Recent results give us confidence that we’ve made the right strategic shifts and investments to successfully improve the overall Macy’s Inc. customer experience.”
Despite the turn to profitability, the company has a modest outlook for the upcoming year due to economic instability and the looming pressure from additional tariffs.
For the upcoming year, the retail giant expects net sales of between $21 billion and $21.4 billion, while comparable sales are expected to drop by 2%.
Spring added: “We are taking a prudent approach to our outlook, reflecting the external uncertainties that both we and the consumer are facing.
“We will closely monitor sell-throughs and thoughtfully make adjustments that reflect our demand throughout the year.
“At the same time, we will further scale changes in order to achieve our long-term ambition.”
As part of its turnaround strategy, the company will shutter around 60 locations to streamline its operations and optimize its remaining fleet.
The department store chain joins a growing list of companies closing down stores in 2025.
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