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Macy’s Cuts Earnings Guidance on Tariff and Spending Uncertainty - Barron's

1. Macy's beat profit estimates but lowered its yearly outlook. 2. Adjusted earnings were 16 cents, higher than the expected 15 cents. 3. Revenue of $4.8 billion exceeded projections of $4.4 billion. 4. Profit guidance trimmed from $2.05-$2.25 to $1.60-$2.00 per share. 5. Sales forecast remains unchanged despite overall declines in same-store sales.

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FAQ

Why Bearish?

The cut in profit guidance signals concerns about future performance. Historical examples show similar guidance cuts often lead to stock declines.

How important is it?

The guidance cut is significant for investor sentiment and stock projections. The context of ongoing tariffs and consumer spending trends suggests continued volatility.

Why Short Term?

Changes in consumer spending and tariffs will affect quarterly results directly. Previous profit downgrades have impacted stock prices within a few months.

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