Macy’s (NYSE:M) reported better-than-expected first-quarter results but lowered its full-year 2025 outlook, citing the impact of tariffs, cautious consumer spending, and heightened promotional activity.

For Q1, the retailer posted adjusted earnings per share of $0.16, ahead of the $0.14 consensus. Revenue came in at $4.6 billion, topping estimates of $4.4 billion.

Looking ahead, Macy’s cut its 2025 EPS guidance to a range of $1.60–$2.00, down from $2.05–$2.25 and below the $1.93 analyst consensus. The company maintained its net sales outlook at $21.0–$21.4 billion, in line with expectations.

Adjusted EBITDA margin is now forecast between 7.4% and 7.9%, compared to the prior 8.4%–8.6%. Core adjusted EBITDA margin is seen at 7.0%–7.5%, versus 8.0%–8.2% previously. Macy’s expects comparable sales for its go-forward business to decline by about 2% to flat.