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Macy’s, Inc. (M - Free Report) is likely to witness top- and bottom-line growth when it reports third-quarter fiscal 2021 numbers on Nov 18, before the opening bell. The Zacks Consensus Estimate for revenues is pegged at $5,291 million, which suggests an increase of 32.6% from the prior-year quarter’s reported figure.

The Zacks Consensus Estimate for earnings has improved by five cents in the past seven days and is currently pegged at 31 cents per share. In the year-ago quarter, the company reported a loss of 19 cents. Macy's bottom line surpassed the Zacks Consensus Estimate by 486.4% in the last reported quarter. The company has a trailing four-quarter earnings surprise of 269.8%, on average.

Key Aspects to Note

Macy’s third-quarter performance is likely to have gained from continued economic recovery, as pandemic-led restrictions ease. Such aspects are likely to have aided the company’s performance across merchandise categories and its three key brand lines — Macy’s, Bloomingdale’s and Bluemercury.  

Benefits from the execution of the Polaris growth strategy are likely to have aided the company’s performance during the quarter in review. The strategy is aimed at strengthening customer relationships, expanding assortments and optimizing store portfolio among others. Such measures along with focus on price optimization, inventory management, merchandise planning and boosting private label offerings, are likely to have been tailwinds.

Macy’s is undertaking prudent measures to boost online sales. It has been striving to bolster omni-channel capabilities, such as curbside pickup and same-day delivery as well as enhancing mobile and website features to deliver superior shopping experience. It has also been undertaking measures to boost customer engagement by expanding the loyalty programs.

However, adverse impacts stemming from supply chain disruptions, caused by the pandemic, cannot be ruled out. Such supply chain disruptions have been causing delays and shortages across some of the company’s product categories. Also, elevated delivery expenses are a concern.

Macy's, Inc. Price, Consensus and EPS Surprise

Macy's, Inc. price-consensus-eps-surprise-chart | Macy's, Inc. Quote

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Macy’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Macy’s has a Zacks Rank #1 and an Earnings ESP of +9.77%.