Department store chain Macy’s (NYSE:M) will be reporting results tomorrow before market open. Here’s what you need to know.
Macy's met analysts’ revenue expectations last quarter, reporting revenues of $8.01 billion, down 4.4% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
This quarter, analysts are expecting Macy’s revenue to decline 7.5% year on year to $4.63 billion, a further deceleration from the 3.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.
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 has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Macy’s peers in the general merchandise retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Dillard’s revenues decreased 1.6% year on year, meeting analysts’ expectations, and Ross Stores reported revenues up 2.6%, topping estimates by 0.5%. Dillard's traded up 8.1% following the results while Ross Stores was down 9.8%.
There has been positive sentiment among investors in the general merchandise retail segment, with share prices up 8.8% on average over the last month. Macy’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $13.33 (compared to the current share price of $11.60).
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