Macy's Forecasts Lower Annual Sales and Profit for 2026
Macy's expects 2026 sales of $21.4 billion to $21.7 billion due to cautious spending. The retailer anticipates that import tariff pressures will ease by July.
Macy's, Inc. has issued a cautious forecast for its annual revenue and profit, pointing toward a slowdown in consumer spending and ongoing macroeconomic challenges. The department store operator expects the financial impact of import tariffs in the United States to diminish during the second half of the year, although near-term pressures persist.
The retailer's prudent outlook mirrors a broader trend among major retail players, including Walmart Inc. and Kohl's, who have adopted defensive stances due to the fragile state of the domestic consumer. For the fiscal year 2026, Macy's projects net sales between $21.4 billion and $21.7 billion, a decline from the $21.8 billion reported in 2025. This guidance aligns closely with analyst expectations of $21.42 billion.
Chief Executive Officer Tony Spring is currently spearheading a turnaround strategy focused on capturing the interest of more affluent shoppers. This move aims to offset the decreased demand from price-sensitive customers who are increasingly burdened by inflation and economic volatility. Despite these efforts, the company expects annual adjusted profit to fall between $1.90 and $2.10 per share, down from $2.15 in the previous year.
Supply chain dynamics remain a critical factor as the company navigates its manufacturing footprint in China. While a Supreme Court ruling has led to a more uniform 10% tariff rate, Macy's noted that inventory sourced at higher previous rates could weigh on margins through the first half of 2026, with the most significant impact anticipated in the first quarter.
In the fourth quarter of 2025, the company's performance showed resilience during the holiday period. Total sales reached $7.64 billion, surpassing the $7.62 billion estimated by analysts, even as they fell 1.7% year-over-year. While the core Macy's brand saw a 3.2% decline in total sales—partially due to store closures—comparable sales edged up by 0.4%. Luxury segments showed continued strength, with Bloomingdale's reporting an 8.5% increase in sales and the beauty-focused Bluemercury brand growing by 2.5%.
