Earnings Preview | Macy's Q4 profits are expected to plummet, US retail stocks continue to be under pressure
Macy's will announce its fourth-quarter results on March 6, expecting revenue of $7.78 billion, a year-on-year decrease of 4.2%; earnings per share of $1.55, a year-on-year decrease of 36.7%. Over the past 30 days, the earnings per share forecast has been revised down by 2.35%. Although Macy's has exceeded expectations in three of the past four quarters, its latest guidance is below market expectations, leading to a decline in stock price. Walmart's performance was better than expected, but its earnings guidance was disappointing, increasing market uncertainty
According to Zhitong Finance APP, Macy's (M.US) will announce its fourth-quarter results before the U.S. stock market opens on March 6 (Thursday). The market expects Macy's Q4 revenue to be $7.78 billion, a decrease of 4.2% compared to the same period last year; earnings per share are expected to be $1.55, a year-on-year decline of 36.7%.
In the past 30 days, the expected earnings per share for the fourth quarter have been revised down by 2.35% to the current level.
In the past four quarters, the company's earnings per share have exceeded market expectations three times.
In January of this year, Macy's issued fourth-quarter guidance that fell short of market expectations, causing its stock price to drop. The department store indicated at that time that it expected adjusted diluted earnings per share for the fourth quarter to be between $1.40 and $1.65, consistent with previous expectations. The midpoint of $1.525 is below market expectations. Macy's expects net sales to be slightly below the lower end of the previously announced range of $7.8 billion to $8 billion, while the market at that time expected $7.83 billion.
It is worth noting that U.S. retail giant Walmart (WMT.US) previously reported better-than-expected fourth-quarter results for fiscal year 2025, but the company's guidance for fiscal year 2026 was disappointing, indicating that the uncertain economic environment is impacting the company.
Walmart's guidance has made investors nervous and has put pressure on other retailers that are about to announce their results. Grocery prices in the U.S. remain high, especially for eggs. Even wealthier consumers still have a demand for discounts