Department store chain Macy’s (NYSE:M) will be reporting earnings this Wednesday morning. Here’s what to look for.
Macy's beat analysts’ revenue expectations last quarter, reporting revenues of $4.91 billion, flat year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.
Is Macy's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Macy’s revenue to decline 2.8% year on year, improving from the 4.4% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Macy's rarely misses Wall Street’s revenue estimates.
Looking at Macy’s peers in the general merchandise retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Kohl’s revenues decreased 4.2% year on year, meeting analysts’ expectations, and Dillard's reported a revenue decline of 3%, falling short of estimates by 1.5%. Kohl's traded down 6.8% following the results while Dillard's was also down 7.1%.
Read our full analysis of Kohl’s results here and Dillard’s results here.
The euphoria surrounding Trump’s November win lit a fire under major indices, but potential tariffs have caused the market to do a 180 in 2025. While some of the general merchandise retail stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 9.8% on average over the last month. Macy's is down 23% during the same time and is heading into earnings with an average analyst price target of $21.40 (compared to the current share price of $17.12).
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