Department store chain Macy’s (NYSE: M) will be reporting earnings this Thursday morning. Here’s what to expect.
Macy's beat analysts’ revenue expectations last quarter, reporting revenues of $4.89 billion, up 2.1% year on year. It was a very strong 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 be flat year on year, improving from the 1.9% 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 will 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 Q2 results, giving us a hint as to what we can expect. Kohl's posted flat year-on-year revenue, meeting analysts’ expectations, and Dillard's reported flat revenue, in line with consensus estimates. Kohl's traded up 2.7% following the results while Dillard's was down 11.8%.
Read our full analysis of Kohl’s results here and Dillard’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). 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 5.6% on average over the last month. Macy's is down 9.6% during the same time and is heading into earnings with an average analyst price target of $23.45 (compared to the current share price of $22.51).
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