Macy's (M) opened Q1 2027 with revenue of US$4.9 billion and basic EPS of US$0.24, alongside net income of US$63 million and same store sales growth of 3%. Over the past few quarters, revenue has moved from US$4.8 billion in Q1 2026 to US$4.9 billion in Q3 2026 and US$5.0 billion in Q2 2026. EPS has ranged from US$0.14 to US$1.91, with trailing twelve month EPS at US$2.50. This sets up a picture of earnings that have shifted meaningfully across periods. For investors, the mix of steady recent comparable sales growth and a 2.9% net margin over the last 12 months frames this release as a margins focused story rather than a pure top line update.

See our full analysis for Macy's.

With the latest numbers on the table, the next step is to see how this earnings profile lines up against the widely held narratives about Macy's and where those stories might need updating.

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Margins Build On 2.9% Net Profit

• Over the last 12 months, Macy's earned US$667 million on US$22.7b of revenue, which works out to a 2.9% net margin compared with 2.4% a year earlier, and trailing EPS over that period was US$2.50.
• Analysts' consensus view expects revenue to decline around 4.6% per year while forecasting only 0.9% annual earnings growth. This partly pushes back on the bullish argument that initiatives like omni channel investments and private label expansion are setting the company up for above market sales and margin growth.
  • Supporters of the bullish view can point to trailing earnings growth of 19.5% year over year and higher margins, which sit alongside the 3% same store sales growth in Q1 2027.
  • At the same time, the five year earnings trend that averaged a 15.6% decline per year and the expectation of revenue contraction show that recent margin progress has not yet turned into a clear long run growth story.

Bulls argue that recent margin gains and omni channel progress could be laying the groundwork for a stronger long term recovery, and you can see how that case stacks up against the latest numbers in the 🐂 Macy's Bull Case

Low 9.1x P/E Versus Peers

• Macy's trades on a trailing P/E of 9.1x compared with a peer average of 14.9x and an industry average of 18.8x, and the DCF fair value of US$37.47 sits well above the current share price of US$23.03.
• What stands out in the more cautious narrative is that even with this apparent discount and a DCF fair value above the market price, analysts still expect revenue to decline about 4.6% a year and only modest earnings growth. This supports the idea that pressure from e commerce rivals and reliance on discretionary spending remain central risks.
  • Consensus assumptions that margins could move from around 2.8% to 3.5% over the next few years show some room for improvement, yet they are paired with expectations that earnings in the US$640 million range will not grow quickly.
  • The gap between the DCF fair value of US$37.47 and the US$23.03 share price, together with a P/E below peers, suggests valuation is appealing on the numbers, while projections of declining revenue explain why some investors stay cautious.

Skeptics point to the projected revenue declines and modest earnings growth as reasons the stock might stay cheap, making it worth reading the detailed cautious case in the 🐻 Macy's Bear Case

Same Store Sales Stabilize Around 3%

• Comparable sales were up 3% in Q1 2027 after 3.2% growth in Q3 2026 and 1.9% in Q2 2026, which contrasts with the 1.2% decline reported in Q1 2026 and sits against trailing 12 month revenue of US$22.7b.
• The consensus narrative that omni channel improvements and store optimization are helping customer satisfaction and margins lines up with these positive comp figures. However, the expected 6.4% to 6.7% annual revenue decline in forward assumptions shows analysts are not extending recent comp trends into overall sales growth.
  • On one hand, initiatives such as Reimagine 125 and luxury and off price concepts are described as supporting broader customer reach, which is consistent with stable or improving same store sales.
  • On the other hand, forecasts that revenue will decline and that earnings growth will trail the wider US market at 0.9% per year highlight how store closures and competition from e commerce are still central concerns.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Macy's on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of optimism and caution feels familiar, use the latest data to move quickly and evaluate both the potential risks and rewards for yourself with the 3 key rewards and 2 important warning signs

Explore Alternatives

Macy's faces pressure from expectations of declining revenue, modest 0.9% earnings growth, and a five year earnings trend that averaged a 15.6% decline per year.

If those headwinds make you question sticking with a slow growth story, consider shifting your focus toward companies screened as 46 high quality undervalued stocks that pair appealing pricing with stronger fundamental momentum.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.