Macy’s (M) is set to report its second-quarter results next week, with analysts and investors eyeing details on the impact of tariffs, weak discretionary spending, and an increasingly promotional environment.

The company is expected to post quarterly revenue of $4.69 billion and earnings per share (EPS) of $0.19, according to data compiled by Fiscal AI. Macy’s is set to report results on September 3.

Retail sentiment on Macy’s remained unchanged in the ‘bullish’ territory, with message volumes at ‘high’ levels, according to data from Stocktwits. Shares of the department store chain were up nearly 1% in early trading. 

Telsey Advisory Group maintained its ‘Market Perform’ rating on Macy’s with a price target of $14. Dana Telsey of Telsey Advisory Group said tariffs are expected to reduce fiscal 2025 earnings per share (EPS) by $0.10 to $0.25 and weigh on gross margin by 20 basis points to 40 basis points.

She added that the second quarter could see margin pressure due to tariffs, particularly from inventory purchased under the 145% tariff rate, as well as markdowns on delayed early spring products aimed at clearing shelves.

Dana Telsey said Macy’s performance continued to strengthen into May and also noted encouraging signs of consumer demand outpacing sentiment, particularly where there are newer assortments and better store offerings.

Macy’s is also building on the back-to-school shopping season by integrating deep discounting events with curated, trend-forward assortments aimed at driving both traffic and conversion across channels, Dana Telsey noted.

Shares of Macy’s have declined over 21% so far this year and have fallen 13.13% in the last 12 months.

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