M · CIK 794367
What Macy's, Inc. told the SEC could break it.
Macy's risks form a single supply-chain story rooted in Asia. It sources the majority of its merchandise from outside the U.S., primarily Asia, with private-label goods made in China, Vietnam, India, Indonesia, Jordan and elsewhere — concentrating its supply in Asian manufacturing. U.S.-China tensions sharpen the China piece of that, with tariffs, sanctions and Xinjiang-related restrictions raising the risk of disruption and higher costs. And tariffs have become a direct margin drag: duties imposed since February 2025 on goods from 90-plus countries pressured fiscal-2025 gross margin (down 40 basis points), and after the Supreme Court struck down the reciprocal tariffs in February 2026, a new 150-day 10% blanket tariff (possibly rising to 15%) is expected to keep weighing on margin and prompt selective price increases.
3 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Regulatory & policy
- China trade tensionsmedium
US-China geopolitical and trade tensions (tariffs, sanctions, Xinjiang detentions) create supply-disruption risk and higher costs for products Macy's sources from China.
“These geopolitical, trade and investment tensions have created additional uncertainty and increased risk in doing business in China, including potential supply disruptions and higher costs of our products sourced or imported from China.”
- US import tariffs 2025-2026medium
Trump-administration tariffs on imports from 90+ countries have pressured Macy's gross margin (down 40 bps in FY2025); a new 150-day 10% blanket tariff (possibly rising to 15%) is expected to keep weighing on margin and drive selective price increases.
“Since February 2025, the Trump Administration has imposed tariffs on products imported from more than 90 countries including Canada, Mexico, China and other United States trading partners. On February 20, 2026, the U.S. Supreme Court struck down the “reciprocal” and “fentanyl trafficking” tariffs, ruling the International Emergency Economic Powers Act does not authorize the President to impose those tariffs. In response, President Trump imposed a 150-day 10% tariff on imported goods and indicated it may be increased to 15%. The prior tariffs have had, and the new tariffs are expected to have a negative impact on our gross margin and could lead to selective price increases across our product categories.”
Geographic concentration
- Asia merchandise sourcingmedium
Macy's sources the majority of its merchandise from outside the U.S., primarily Asia, with private-label goods coming from China, Vietnam, India, Indonesia, Jordan and other countries — concentrating supply risk in Asian manufacturing.
“We source certain of our private label products from factories in China, Vietnam, India, Indonesia, Jordan and other countries.”
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
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