Macy's (M.US) Q4 profit is expected to plummet, as US retailers continue to face challenges.

Macy's (M.US) will release its fourth-quarter earnings before the market opens on Thursday, March 6. The market anticipates Macy's Q4 revenue to be $7.78 billion, a 4.2% YoY decline; EPS to be $1.55, a 36.7% YoY decrease. The EPS expectation for Q4 has been revised downward by 2.35% over the past 30 days, reaching the current level. Macy's has exceeded the consensus EPS three times in the past four quarters. In January, Macy's provided a fourth-quarter guidance that fell short of market expectations, causing its stock price to drop. The department store stated that it expects adjusted diluted EPS to be between $1.40 and $1.65, in line with previous expectations. The midpoint of $1.525 was lower than the market's expectations. Macy's expects net sales to be slightly below the lower end of the previously released range of $7.8 billion to $8.0 billion, while the market anticipated $7.83 billion. It is noteworthy that Walmart (WMT.US) previously reported better-than-expected fourth-quarter 2025 earnings, but its 2026 profit guidance disappointed, indicating that the uncertain economic environment is impacting the company. Walmart's guidance has alarmed investors and put pressure on other retailers that are set to report earnings. Grocery prices in the U.S. remain high, particularly for eggs. Even wealthier consumers are still seeking discounts.