Telsey Advisory Lowers PT on Macy’s (M) to $14, Maintains Market Perform Rating

On May 29, Telsey Advisory reduced Macy’s, Inc. (NYSE:M)’s price objective to $14 from the prior target of $15, while keeping a “Market Perform” rating, as reported by The Fly.

This adjustment comes as the company’s Q1 2025 EPS surpassed expectations, due to a less severe topline decline, and a real estate sale gain that offset the higher-than-anticipated operating expenses. Macy’s, Inc. (NYSE:M) achieved net sales of $4.6 billion, exceeding its prior guidance range.

However, the firm believes that the near term has limited visibility. This is because growth in sales and profitability is challenging amidst a competitive promotional space against a difficult consumer environment. Macy’s, Inc. (NYSE:M) has revised its annual outlook amidst initial and current tariffs, some moderation in consumer discretionary spending, and an increased competitive promotional landscape.

On the basis of actions taken, and its assumption that current tariffs remain in place, the company expects a combined tariff impact to Macy’s, Inc. (NYSE:M)’s annual gross margin of ~20 bps – 40 bps.

For FY 2025, it expects adjusted EBITDA as a percent of total revenue to be in the range of 7.4% to 7.9% as compared to the prior range of 8.4% to 8.6%. It has also reduced its adjusted diluted EPS range from $2.05 – $2.25 to $1.60 – $2.00.

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