Macy's Inc. reported its fourth quarter and fiscal year 2024 earnings, revealing a net sales decline of 4.3% to $7.8 billion, with adjusted earnings per share of $1.80 surpassing the consensus estimate of $1.54. Despite the sales drop, the company's performance was influenced by a week less in the reporting period compared to the previous year. Macy's provided a cautious outlook for fiscal year 2025, projecting net sales between $21 billion and $21.4 billion, falling short of Wall Street's expectations of $21.66 billion. Adjusted earnings per share for 2025 are anticipated to be between $2.05 and $2.25, below the consensus estimate of $2.31. The company's stock reached a 16-month low following the earnings release, reflecting investor concerns over the guidance and the broader retail sector's challenges. Macy's attributed the cautious outlook to external uncertainties, including the impact of tariffs and a soft consumer environment. The retailer is in the midst of a turnaround effort, focusing on its core brands such as Macy's, Bloomingdale's, and Bluemercury, and plans to close underperforming stores as part of its strategy. Macy's stock was flat at about $13.28 in midday trading. Simultaneously, Kroger Co. announced its fourth quarter and fiscal year 2024 results, reporting a 7% decline in quarterly sales to $34 billion, which missed analyst expectations. The company's profit for the quarter was $634 million, down from $736 million the previous year. Kroger's guidance for fiscal year 2025 included a projected earnings per share range of $4.60 to $4.80, which disappointed investors, leading to a drop in premarket trading. This financial update came shortly after the abrupt resignation of Kroger's CEO, Rodney McMullen, following an investigation into his personal conduct. Kroger reported a robust $2.7 billion profit on $147.1 billion of sales in 2024. Looking ahead, the company predicted identical sales excluding fuel would grow 2% to 3% in 2025, with a profit before one-time items topping $3 billion. Kroger's interim CEO, Ron Sargent, expressed confidence in the company's position and future momentum.