Macy's to Raise Prices Due to Tariffs

Macy's cut its full-year profit guidance on Wednesday despite higher-than-expected quarterly earnings, saying in a news release it would hike prices to offset tariffs. CNBC reported that the department store chain reduced its earnings outlook because of higher tariffs, more promotions, and "some moderation" in discretionary spending.

Macy's generated $4.6 billion in sales in the first quarter of 2025 — more than it predicted — with its brands Bloomingdale's and Bluemercury growing sales. It was Bluemercury's 17th straight quarter of sales growth.

"Our first quarter results give us confidence that we have the right strategy and team in place to navigate the current environment while we continue to invest in our customer on the path to returning Macy’s, Inc. to sustainable profitable growth," Chairman and CEO Tony Spring said in the release.

In an interview with CNBC, Spring said Macy's will raise some prices — he didn't specify by how much, but explained the company would be "surgical" with price changes — and stop carrying certain items to mitigate the impact from tariffs.

Total Retail's Take: Despite consumer sentiment being much stronger in May than expected (according to the Conference Board's Consumer Confidence Index released Tuesday), Macy's is taking a cautious approach to the rest of the year. It plans to shutter about 150 underperforming stores by 2027 and reinvest those savings into more successful stores.

Macy's, like other retailers, is facing the new 30 percent tariffs from items coming from China. Spring told CNBC the outlook doesn't include a potential increase in tariffs on the European Union or any other U.S. trading partner. Over the last few days, U.S. President Donald Trump threatened, then paused, an additional 50 percent tariff on goods from the EU until July 9, saying discussions with the EU were "going nowhere," according to The New York Times.