STORY: Macy's cut its annual profit forecast on Wednesday, saying U.S. tariffs would impact the retailer's earnings.CEO Tony Spring said Macy's would increase prices selectively on some products to soften the hit to margins from tariffs.Macy's also indicated it would reduce prices on its spring collection to better manage its inventory.Department store chains have consistently lost market share to cheaper products from off-price and big-box players and competition will likely intensify this year with inflation expected to jump following the Trump administration's tariffs.The reduced profit outlook came even as the top U.S. department store operator posted first quarter results that topped estimates and it maintained its annual net sales forecast.Analysts at Citi said the fact that Macy’s did not pull its financial guidance as other retailers have done is a positive.The company benefitted from solid sales of beauty and skincare products at its Bluemercury division and at its high-end Bloomingdale’s stores. Remodeled Macy’s stores also performed well, but one Morningstar analyst said there is still a lot of work to do.Shares of Macy's opened lower but regained ground by midday. The stock has lost about 25% of its value this year.