Macy's (M) shares dropped 4.4 percent to close at $23.13, underperforming the S&P 500's 0.32 percent gain and the Nasdaq's 1.09 percent rise. The Dow Jones fell 0.46 percent.
Analysts project Macy's will report negative earnings of $0.19 per share in its upcoming quarterly report—a 311 percent decline year-over-year. Consensus revenue estimates stand at $4.7 billion, down 0.36 percent from the prior-year quarter.
Earnings estimates have deteriorated over the last 30 days, with the Zacks Consensus EPS estimate falling 0.68 percent. For the full year, analysts expect earnings of $2.32 per share (flat year-over-year) and revenue of $21.81 billion (down 0.38 percent).
Macy's carries a Zacks Rank of #3 (Hold). The stock trades at a Forward P/E of 10.42, a discount to the industry average of 11.39, but the magnitude of the expected earnings collapse presents a material headwind to share appreciation.
Over the past month, M gained 6.14 percent while the Retail-Wholesale sector added 9.3 percent and the S&P 500 declined 5.4 percent. The Regional Department Stores industry holds a Zacks Industry Rank of 65, placing it in the top 27 percent of more than 250 industries.
