Macy’s cut its full-year profit guidance on Wednesday even as it beat Wall Street’s quarterly earnings expectations, as the retailer’s CEO said it will hike prices of certain items to offset tariffs.

Macy's cut its annual profit forecast on Wednesday as the top U.S. department store operator navigates tariff-led uncertainty and cautious spending on apparel and accessories.

Department store chains have consistently lost market share, and competition will likely intensify this year with inflation expected to jump.