Macy’s (M) Shares Plunge 0.86% to 2025 Low as Tariffs, Inflation Cripple Retailer

Macy’s (M) shares fell to their lowest level since September 2025 on Tuesday, with an intraday decline of 0.86%. The stock has now dropped 0.23% over two consecutive trading days, extending its recent downward trend as the company grapples with broader retail sector headwinds and strategic overhauls.

Key factors weighing on the stock include persistent consumer spending pressures and rising costs from Trump-era tariffs. The CEO highlighted that inflation and economic uncertainty continue to suppress discretionary spending, with both low- and high-income shoppers adopting a more cautious approach. This has directly impacted Macy’s sales, as reduced foot traffic and weaker demand for non-essential goods compound existing challenges.

Tariffs announced in May 2025 have further strained the retailer’s margins. The 10% baseline tariff on imports has forced Macy’s to implement gradual price increases, though the company is balancing these adjustments with vendor negotiations and production shifts to mitigate costs. Meanwhile, operational restructuring remains a focal point, with the closure of 150 underperforming stores in 2025 to reallocate resources to stronger locations. These closures, part of a broader industry trend, signal a strategic pivot toward cost efficiency but also reflect a shrinking physical footprint.

The company is emphasizing in-store experience enhancements and selective inventory management to retain customers. Leadership has prioritized “good value” and “inspiring marketing” to counteract spending constraints, while canceling orders that cannot be sourced at competitive prices. However, these efforts must contend with a competitive landscape dominated by discount retailers and e-commerce platforms, which are reshaping consumer expectations around affordability and convenience.

Macroeconomic uncertainties, including stubborn inflation and political volatility, add to the complexity. Surveys indicate a significant portion of consumers are cutting back on spending due to recession fears, aligning with the broader retail sector’s cautious outlook. Macy’s ability to navigate these challenges will depend on its execution of cost controls, strategic store realignments, and maintaining a compelling value proposition for shoppers in a high-pressure economic environment.