Macy’s said it expect sales to decline again this year as even affluent customers of the department store chain wait to see how swirling tariffs and inflationary pressures affect the economy.

Macy's forecast annual sales and profit below Wall Street's expectations on Thursday, joining several U.S. retailers in signaling that shoppers were holding off buying apparel and accessories in the face of economic uncertainty.

Macy’s Inc. gave a more downbeat outlook for sales and profit this year than Wall Street had been expecting, a sign executives are cautious about the American consumer.

As the iconic department store struggles with sagging sales and macroeconomic uncertainties, Macy’s (NYSE:M) disappointing outlook for the current quarter and fiscal year overshadowed better-than-expected fourth quarter results and drove shares lower ahead of Thursday’s opening bell.

Department store chain Macy’s (NYSE:M) in Q4 CY2024, but sales fell by 4.4% year on year to $8.01 billion. On the other hand, the company’s full-year revenue guidance of $21.2 billion at the midpoint came in 0.