Macys on Wednesday slashed its annual profit forecast and warned of incoming price hikes to offset President Trump’s hefty tariffs.

The legacy department store chain now expects adjusted earnings per share of $1.60 to $2 in 2025 — down from its previous forecast of $2.05 to $2.25. 

Macys CEO Tony Spring told CNBC about 15 cents to 40 cents per share of that forecast drop is due to the tariffs.

The company also nodded to challenges from a slowdown in consumer spending and more competitive promotions and discounts across the retail industry.

(Higher) pricing is working its way into the system slowly, Spring said during a post-earnings call.

That’s why we have taken a more cautious approach to our outlook for the year.”

He told CNBC the retailer will be surgical about its pricing strategy, raising only certain items and leaving others the same price as they were a year ago.

Macys reaffirmed its annual sales forecast of $21 billion to $21.4 billion, which would be a decline from last years $22.29 billion.

It also reported earnings and revenue slightly above expectations for the three months ended May 3.

Adjusted earnings per share were 16 cents, beating projections of 14 cents, and revenue came in at $4.6 billion, above expectations of $4.5 billion.

Reported revenue was still a far drop from the $4.85 billion seen in the same quarter last year.

Shares in Macys jumped 3.4% premarket on Wednesday.

The retailer is about a year through Springs three-year turnaround plan, which is focused on closing weaker stores with plans to close 150 Macys locations by early 2027 and boosting the companys Bluemercury and Bloomingdales businesses.

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Macys so far has invested in more staffing, improved displays and a new mix of merchandise at 125 locations, or about a third of the namesake stores that the company plans to keep open.

Comparable sales at these locations fell 0.8% compared to the same period last year better than the 2.1% drop across the overall Macys business.

The remodeled Macy’s stores are performing better. But this company isn’t reporting consistently positive comparable sales so there’s still a lot of work to do, said Morningstar analyst David Swartz.

Comparable sales at Macys stores excluding the locations that are expected to shutter fared better, at a 1.9% decline.

Same-store sales at Bloomingdales, which sells high-end clothing, and Bluemercury, a luxury skincare and beauty retailer, jumped 3.8% and 1.5%, respectively, compared to the year before.

Thats not an unusual trend for Macys, which has seen net sales fall for 12 straight quarters at its namesake stores while Bluemercury has reported four years of positive sales.

Macys shares are down about 27% so far this year.

Several other retailers have cut or suspended their annual guidance as they face heightened uncertainty amid trade war tensions.

Dicks Sporting Goods, however, stood by its full-year forecast on Wednesday despite looming tariff-related pressures.

It reaffirmed its annual earnings per share forecast between $13.80 and $14.40, in line with the $14.29 expected by analysts.

The popular sporting goods retailer is projecting revenue between $13.6 billion and $13.9 billion, which is also in line with expectations of $13.9 billion.

We are reaffirming our 2025 outlook, which reflects our strong start to the year and confidence in our strategies and operational strength while still acknowledging the dynamic macroeconomic environment, CEO Lauren Hobart said in a press release.

The Federal Reserve’s preferred inflation gauge cooled to its lowest level since last fall, helping to calm jittery markets Friday despite rising trade tensions between the US and China.

The Personal Consumption Expenditures (PCE) index rose just 2.1% in April compared with a year earlier, down from 2.3% in March and the lowest since September, according to data released Friday by the Commerce Department.

Excluding the volatile food and energy categories, core PCE prices rose 2.5% from a year earlier, below the March figure of 2.7%, and the lowest in more than four years.

Economists track core prices because they typically provide a better read on where inflation is headed.

The Commerce Department data came out hours after President Trump accused China of violating a tariff agreement, ramping up tensions in a trade war that has roiled global markets and businesses.

Traders continued to bet that the U.S. central bank will cut its target for short-term borrowing costs in September.

At 11 a.m. ET, the Dow Jones Industrial Average fell 45 points, or 0.1%, to 42,173, the S&P 500 lost 17 points, or 0.43%, to 5,894 and the Nasdaq Composite dropped 103 points, or 0.5%, to 19,071.

The figures show inflation is still declining from its post-pandemic spike, which reached the highest level in four decades in July 2022.

Economists andsome business executiveshave warned that prices will likely head higher as Trumps widespread tariffs take effect, though the timing and impact of those duties are now in doubt after they werestruck down late Wednesdayincourt.

On a monthly basis, overall prices and core prices both increased just 0.1% from March to April.

The cost of big-ticket manufactured goods rose a hefty 0.5%, though that increase was offset by a 0.1 decline in other goods, such as groceries.

The cost of services rose just 0.1% from March to April.

The big increase in durable goods prices could reflect the early impact of tariffs.

Americans also cut back their spending on longer-lasting factory goods in April, the report showed.

Overall consumer spending which includes spending on services rose 0.2% in April from March, the report said, but thats down from a big 0.7% rise in March.

The slowdown in spending could reflect some early caution on the part of consumers, economists said, in response to higher goods prices.

It also suggests that some of the spending jump in March reflected consumers purchasing items like cars to get in front of the impact of tariffs.

The pulling forward of consumer spending ahead of the tariff increases will continue to dampen household spending in the coming months, especially as they face higher prices and a softening labor market, Kathy Bostjancic, chief economist at Nationwide, said in an email.

We anticipate that the improved inflation trend will reverse in the second half of the year as companies are forced to begin passing along a portion of the increased tariffs in order to protect profit margins.

Walmart executives said earlier this month that the retail giant would increase prices for many products in May and June to account for the tariffs, while electronics chain Best Buys CEO Corie Barry said Thursday the company is increasing some prices as well because of the duties, as a last resort.

At the same time, incomes before adjusting for inflation rose a healthy 0.8% in April.

Much of that gain reflected an increase in Social Security benefits for some retired teachers, fire fighters, and federal workers whose incomes previously werent fully counted toward Social Security benefits.

The inflation-fighters at the Fedsaid at their most recent meetingMay 6-7 that inflation is still elevated, compared to their target of 2%.

Fed officials, who focus more on core prices, broadly support keeping their key interest rate steady while they evaluate the impact of the tariffs on inflation and jobs.

Thecourt rulinglast Wednesday said that most of Trumps tariffs were unlawful, including his duties on imports from Canada, Mexico, and China, as well as those on more than 50 other countries.

Tariffs on steel, aluminum, and cars were implemented under different laws and remain in place.

But the duties were allowed to remain in effect while the Trump administration appeals the ruling against them.

And administration officials say they will find other legal authorities, if needed, to implement the tariffs.

As a result, what tariffs will end up in place and for how long remains highly uncertain.

The price of eggs has dropped just over 61% since President Donald Trump took office in January, after spiking to an all-time high in March. 

The most recent data from the US Department of Agriculture (USDA) shows white, large shell eggs are now $2.52 per dozen nationally.

On Jan. 21, that same carton of eggs would have run an American about $6.49, according to data website Trading Economics. 

Trading Economics shows eggs were over $8 a dozen the first week of March.

“Shell egg demand posted a slight improvement headed into the Memorial Day weekend but remained well below average in the continuation of a trend that began during the sharp price increases in late winter,” the USDA Egg Markets Overview weekly publication said. 

Back in April, a study by Clarify Capital said over 30% of Americans had stopped buying eggs due to their exorbitant cost. 

Weaker demand and a lull in new cases of bird flu helped cool prices, analysts said at the time.

That same month, Reuters reported that the US had increased imports of eggs from Turkey, Brazil and South Korea in an attempt to increase supplies amid an ongoing bird flu outbreak that has killed nearly 170 million chickens, turkeys and other birds since 2022.

Since the outbreak began in 2022, bird flu has affected over 166 million birds, including 127 million egg layers.

This equates to an average loss of 42.3 million egg layers per year, or about 11% of the five-year average annual layer inventory of 383 million hens since the outbreak began, according to Bernt Nelson, an economist with the American Farm Bureau Foundation. 

The USDA’s Animal and Plant Health Inspection Service (APHIS) confirms that the effects of the outbreak continue today.

“To date, USDA APHIS has confirmed 43 outbreaks in layer flocks in 10 states (AZ, CA, IA, IN, MO, NC, OH, PA, SD, and WA),” the Egg Markets Overview said.