Macy's Inc. reported a cautious outlook for 2025, with projected sales between $21 billion and $21.4 billion, falling short of Wall Street expectations. The company's fourth-quarter results showed a net income of $342 million, a significant improvement from the previous year's loss of $128 million, with adjusted earnings per share reaching $1.80, surpassing analyst estimates of $1.53. However, revenue for the quarter declined by 4.3% to $7.77 billion, slightly missing expectations. CEO Tony Spring attributed the cautious outlook to external uncertainties including Trump tariffs and economic uncertainty, which are affecting consumer spending, even among affluent customers. The company's performance was mixed, with Bloomingdale's and Bluemercury showing positive comparable sales growth of 4.8% and 6.2% respectively, while the Macy's banner saw a decline of 1.9%. Spring highlighted progress in the company's turnaround strategy, which includes closing 150 underperforming stores by the end of fiscal 2026 and investing in 350 'go-forward' locations. The strategy has shown some success, with the 'First 50' locations achieving four consecutive quarters of sales growth. These locations have benefited from investments in private labels, merchandising, visual presentation, and customer experience, aimed at driving long-term profitable growth and unlocking shareholder value. Macy's also reported a significant increase in asset sale gains to $144 million in fiscal 2024, more than double the previous year's figure, driven by the closure of 64 stores. The company is resuming share buybacks under its remaining $1.4 billion authorization, reflecting confidence in its long-term strategy despite the challenging retail environment. Inflation pressure and real consumer spending declines are additional factors contributing to the cautious outlook. Other major retailers like Abercrombie & Fitch and BJ's Wholesale Club also issued cautious forecasts for 2025. Abercrombie & Fitch saw its shares drop 15% after providing weak guidance, while BJ's reported strong fourth-quarter results with a 4.0% increase in comparable club sales and plans to open 25 to 30 new clubs over the next two years, including expansion into Texas. BJ's also noted significant growth in digital sales and a record membership fee income of $117 million, reflecting strong renewal rates.