Earnings To Watch: Macy's (M) Reports Q1 Results Tomorrow

Department store chain Macy’s (NYSE:M) will be announcing earnings results this Wednesday before market open. Here’s what investors should know.

Macy's beat analysts’ revenue expectations last quarter, reporting revenues of $7.92 billion, down 1.1% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ gross margin estimates but full-year EPS guidance missing analysts’ expectations significantly.

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 4.1% decrease it recorded in the same quarter last year.

The majority of analysts covering the company have 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 Q1 results, giving us a hint as to what we can expect. Dillard's delivered year-on-year revenue growth of 2.7%, beating analysts’ expectations by 1.3%, and Kohl's reported a revenue decline of 2%, in line with consensus estimates. Dillard's traded up 1.1% following the results while Kohl's was also up 11%.

Read our full analysis of Dillard’s results here and Kohl’s results here.

There has been positive sentiment among investors in the general merchandise retail segment, with share prices up 2.6% on average over the last month. Macy's is up 14.7% during the same time and is heading into earnings with an average analyst price target of $19.40 (compared to the current share price of $21.93).

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