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Macy's (NYSE:M) is expected to report Q1 earnings before the open on Wednesday, May 9, with a conference call scheduled for 10:30 am ET.

Guidance

Analysts are looking for EPS of 40c on revenue of $6.13B. The consensus range is 36c-48c for EPS, and revenue of $6.05B-$6.16B, according to First Call. On May 3, the retailer reported a Q1 same-store sales increase of 4.4% on total Q1 sales of $6.147B. The company also said April SSS increased 1.2% and March-April SSS were up 4.4%. In February, Macy's beat Q4 EPS expectations, with adjusted EPS of $1.70, and forecast FY12 EPS $3.25-$3.30, consensus $3.41. During the quarter, CEO Terry Lundgren told CNBC that the company is picking up over $1B per year in SSS growth and the company's corporate credit rating was upgraded by S&P to 'BBB' from 'BBB-' reflecting strong performance over the past year. Macy's also announced plans to grow its business with customers in the Millenial generation, including a series of steps to enhance its assortment in MStyle Lab and Impulse; the company recently said it would collaborate with fashion icon and designer Nichole Richie for a special collection to be carried exclusively by the retailer this fall.

Analyst Views

During the quarter, Macy's was initiated with a Neutral rating at UBS and its price target was raised at JP Morgan and at Credit Suisse. Analysts and investors will listen for comments on competition, especially from J.C. Penney (NYSE:JCP), which has a new pricing plan that focuses on everyday prices and longer promotions, as well as on the company's legal battle with Martha Stewart (NYSE:MSO). In the year-ago quarter, Macy's reported EPS of 30c on revenue of $5.89B.

Source: Earnings Preview: Macy's