Earnings Preview: Macy's

Macy's (M) is expected to report Q3 earnings before the market open on Wednesday, November 11 with a conference call scheduled for 10:30 am ET.

Guidance

Analysts are looking for a loss of 10c on revenue of $5.2B. The consensus range is (22c)-1c for EPS, and revenue of $5.11B-$5.28B, according to First Call. The company reported that its September same-store sales fell 2.3%, and 0.8% in October, both better than expected. The company reported Q3 revenue $5.28B, in line with expectations. Previously, the retailer increased its FY09 EPS guidance to 80c-90c from 40c-55c versus First Call consensus of $1.04.

Analyst Views

BMO Capital analyst Wayne Hood believes Macy's will report EPS of (5c), an increase from the prior (9c) view, on improving sales trends. He said the retailer's home and furniture businesses have performed well for the third consecutive month, and brands sold under exclusive deals like Martha Stewart have also fared well. Analysts and investors will listen for comments on early holiday sales, as well as plans for discounts for the holiday season and how the company is faring against J.C. Penney (JCP) in Manhattan. Macy's shares rose 21% during the quarter.