Macy's (M) Reports Earnings Tomorrow: What To Expect

Department store chain Macy’s (NYSE:M) will be reporting results tomorrow before the bell. Here’s what investors should know.

Macy's beat analysts’ revenue expectations by 3.9% last quarter, reporting revenues of $5 billion, down 3.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ earnings estimates and optimistic earnings guidance for the full year.

Is Macy's a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Macy’s revenue to decline 4.3% year on year to $5.05 billion, improving from the 9.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Macy's has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 4% on average.

Looking at Macy’s peers in the general merchandise retail segment, only Dillard's has reported results so far. It missed analysts’ revenue estimates by 1.1%, posting year-on-year sales declines of 5.2%. The stock was down 9.5% on the results.

Read our full analysis of Dillard’s earnings results here.

Investors in the general merchandise retail segment have had steady hands going into earnings, with share prices flat over the last month. Macy's is up 7.7% during the same time and is heading into earnings with an average analyst price target of $19.6 (compared to the current share price of $17.83).

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