Boston, MA 05/13/2014 (wallstreetpr) – One of the biggest chain of retail store operator, Macy’s, Inc. (NYSE:M) is scheduled to announce their financial results for the first quarter on May 14 before the market opens. The company will also be holding a Webcast call on the same day. Will the company’s earnings come in above the Street analysts’ estimations? The question arises after Tumi Holdings Inc (NYSE:TUMI) and Ralph Lauren Corp (NYSE:RL) delivered weak results.
Expectations
On average, 21 Wall Street analysts are expecting Macy’s to report earnings of 59 cents a share with estimate ranging from 52 – 64 cents a share, while 18 analysts are predicting the company to generate revenue of $6.46 billion with predictions ranging between $6.38 billion and $6.59 billion.
While the average expectation represents earnings growth of 7.3%, revenue estimation suggests 1.1% uptick for the first quarter.
During the last four quarters, Macy’s earnings failed to meet analysts’ estimations only once, i.e. during the second quarter of 2013. In the other three quarters, its earnings topped predictions between 3.8% and 20.5%. Retailers’ results get impacted either favorably or unfavorably due to seasonal factors such as winter, summer, or back-to-school sales.
Though the results of Tumi’s and Ralph Lauren’s failed to offer any favorable signs, the monthly sales results from Costco Wholesale Corporation (NASDAQ:COST) and The Gap Inc. (NYSE:GPS) could provide some encouraging signs. In fact, Gap guided earnings outlook to be above the Street outlook.
4Q Results
Macy’s delivered earnings of $2.16 a share and adjusted earnings of $2.31 a share for the fourth quarter. Sales slipped 1.6% to $9.2 billion on comparable store sales growth of 2.3% from $9.35 billion. Excluding the impact of an additional week, sales would have increased 1.4% for the fourth quarter.
While releasing the fourth quarter results, Macy’s, Inc. (NYSE:M) reiterated its earnings and sales outlook for the current year. However, the company could lift or cut its earnings forecast for the current year based on the first quarter results.
