Key Takeaways
- Q1 2027 earnings from Macy’s arrive Wednesday, May 27, with Wall Street forecasting $0.02 per share and $4.61 billion in sales.
- The retailer surpassed expectations in its previous quarter, delivering $1.67 EPS and $7.92B in revenue, despite a 1.7% annual sales decline.
- A newly disclosed Berkshire Hathaway position has injected fresh enthusiasm into Macy’s shares.
- Wall Street maintains a “Reduce” consensus with an $18.90 average target; shares currently hover near $19.10.
- Major institutional players including Marshall Wace, Invesco, and Bridgewater have significantly increased their holdings.
Macy’s finds itself in an unusual spotlight as it prepares to unveil first-quarter fiscal 2027 results. The department store chain has attracted heightened scrutiny following Berkshire Hathaway’s disclosure of a fresh investment position. Wednesday morning’s pre-market earnings release on May 27 promises to draw substantial attention.
Wall Street forecasts call for earnings of $0.02 per share from the legacy retailer. Sales projections stand at approximately $4.61 billion for the three-month period.
These estimates represent a significant step down from the previous quarter’s performance. During Q4, Macy’s exceeded analyst projections with $1.67 in earnings per share compared to the consensus estimate of $1.55, while revenue reached $7.92 billion against expectations of $7.48 billion.
However, that revenue figure marked a 1.7% decrease compared to the corresponding quarter in the previous year. Earnings also showed weakness year-over-year, declining from the $1.80 EPS recorded in that earlier period.
Full-year consensus projections currently stand at $2.00 in earnings per share for Macy’s.
Warren Buffett’s Company Takes a Position
The most significant catalyst surrounding Macy’s shares lately stems from Berkshire Hathaway revealing a newly established stake. The regulatory filing immediately captured market attention, with speculation centering on the retailer’s valuable real estate portfolio and its upscale Bloomingdale’s nameplate as potential motivations behind the move.
Shares have demonstrated relative strength versus the broader indices following the Berkshire announcement. This development has provided a sentiment boost, even as sell-side research firms maintain a generally conservative outlook.
The stock began trading at $19.10, positioned above its 50-day simple moving average of $18.63. Over the past twelve months, the trading range extends from $10.54 on the low end to $24.41 at the peak.
Wall Street Maintains Reserved Outlook
Analyst sentiment remains decidedly mixed. The consensus rating for Macy’s registers as “Reduce” with an average price objective of $18.90.
JPMorgan Chase reduced its target from $24 down to $21 while maintaining a neutral stance. TD Cowen lowered its forecast from $21 to $20, likewise holding at neutral. UBS carries a sell recommendation with a $9 price target.
Zacks Investment Research elevated its rating from “strong sell” to “hold” during April. Among the 14 analysts providing coverage, the breakdown shows one buy recommendation, eleven hold ratings, and two sell recommendations.
The company has announced a quarterly dividend distribution of $0.1915 per share, scheduled for July 1 payment. This represents an annualized payout of $0.77 and generates an approximate yield of 4%.
Institutional Interest Intensifies
Institutional money managers have been accumulating Macy’s equity. Marshall Wace established a fresh position valued at roughly $69.6 million. Bridgewater Associates dramatically expanded its holdings by 1,742%. Invesco lifted its stake by 160.5%.
Collectively, institutional and hedge fund investors control 87.36% of outstanding shares.
Regarding insider transactions, CEO Antony Spring divested 50,044 shares during early April at $17.92 each, a transaction linked to tax obligations on equity compensation. EVP Tracy Preston similarly sold 5,271 shares for identical reasons. Company insiders hold approximately 1.05% of total shares.
The earnings conference call is slated for June 3, 2026 at 8:00 AM Eastern Time.
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