Key Takeaways
- Wall Street anticipates Macy’s Q1 2027 results on May 27, forecasting earnings of $0.02 per share alongside $4.61 billion in quarterly revenue.
- The retailer exceeded expectations last quarter with $1.67 earnings per share and $7.92B in sales, despite a 1.7% annual revenue decline.
- A newly disclosed Berkshire Hathaway position in Macy’s has generated renewed optimism among market participants regarding the stock’s potential.
- Wall Street maintains a cautious “Reduce” consensus with an average price target of $18.90, while shares trade near $19.10.
- Major institutional players including Marshall Wace, Invesco, and Bridgewater have expanded their Macy’s holdings in recent months.
Macy’s finds itself under intensified scrutiny as its Q1 2027 financial results approach. The department store chain has attracted heightened attention following Berkshire Hathaway’s disclosure of a fresh investment position. Market participants are preparing for the company’s pre-market announcement scheduled for Wednesday, May 27.
Wall Street forecasts call for Macy’s to deliver $0.02 in earnings per share. Quarterly revenue projections hover around $4.61 billion.
These estimates reflect more conservative expectations relative to recent performance. During the fourth quarter, Macy’s surpassed analyst projections by reporting $1.67 EPS compared to the anticipated $1.55, while revenue reached $7.92 billion against a $7.48 billion consensus.
However, that revenue figure represented a 1.7% decrease from the corresponding period in the previous year. The company also experienced a year-over-year earnings decline from the $1.80 EPS reported in the prior-year quarter.
Looking ahead to the complete fiscal year, Wall Street consensus points to $2.00 in earnings per share for Macy’s.
Berkshire’s Strategic Move Into Macy’s
The most significant development surrounding Macy’s lately involves Berkshire Hathaway revealing a new equity position. This regulatory filing immediately captured market attention, with industry watchers highlighting Macy’s substantial real estate portfolio and its premium Bloomingdale’s division as potential catalysts for the investment decision.
Shares have demonstrated relative strength versus broader market indices since the Berkshire disclosure emerged. This development has improved investor sentiment, despite persistent caution from sell-side analysts.
The stock began trading at $19.10, positioned above its 50-day moving average of $18.63. Over the trailing twelve months, shares have fluctuated between $10.54 and $24.41.
Wall Street Maintains Reserved Outlook
The analyst community presents a divided perspective. Macy’s currently holds a consensus “Reduce” recommendation with an average price objective of $18.90.
JPMorgan Chase reduced its price target from $24 to $21 while maintaining a neutral stance. TD Cowen lowered its target from $21 to $20, also retaining a hold rating. UBS maintains a sell recommendation with a $9 price target.
Zacks Research upgraded the stock from “strong sell” to “hold” during April. Among 14 analysts tracking the company, one maintains a buy recommendation, eleven rate it as hold, and two recommend selling.
Macy’s has also announced a quarterly dividend distribution of $0.1915 per share, with payment scheduled for July 1. This translates to an annualized dividend of $0.77 and approximately 4% yield.
Institutional Interest Accelerates
Institutional capital has been flowing into Macy’s shares. Marshall Wace established a new position valued at roughly $69.6 million. Bridgewater Associates dramatically increased its holdings by 1,742%. Invesco expanded its stake by 160.5%.
Collectively, institutional investors and hedge funds control 87.36% of outstanding shares.
Regarding insider transactions, CEO Antony Spring divested 50,044 shares in early April at $17.92 each, a transaction connected to tax obligations on equity compensation. EVP Tracy Preston similarly sold 5,271 shares for identical reasons. Company insiders maintain approximately 1.05% ownership.
The company’s earnings conference call is slated for June 3, 2026 at 8:00 AM Eastern Time.
