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.

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.

Macy's forecast another year of falling sales and gave earnings guidance that disappointed investors. Shares in the department-store chain slipped nearly 4% in premarket trading. Read more:

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.