CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
M reported adjusted Q1 FY 27 (Jan.) EPS of $0.13 vs. $0.16 prior year, $0.10 above consensus estimates, on net sales of $4.682B (+1.8% Y/Y) and $70M above estimates. Comparable sales growth of 3.0% marked the strongest Q1 performance in four years and the fourth consecutive quarter of gains. The quarter showed broad-based strength with Bloomingdale's leading at 10.2% comparable sales growth, Macy's nameplate delivering 1.6% growth, and Bluemercury contributing 6.4% growth. Management raised full-year guidance with net sales of $21.5B-$21.75B, comparable sales of +0.5% to +1.2%, and adjusted EPS of $2.00-$2.20. The company returned $100M to shareholders while maintaining $1.3B in cash and a strong balance sheet position. Shares trade around 10x full-year EPS guidance, well above its three- and five-year forward P/E multiples of 7.0x and 6.5x, respectively. In our opinion, this was a typical quarter where sales growth didn't lead to margin expansion, and we do not see a big margin expansion story ahead.