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Earnings Preview: Macy's sees Q3 EPS down vs. last year

Macy's (M) is expected to report Q3 earnings before the open on Wednesday, November 7, with a conference call scheduled for 10:30 am ET. Analysts are looking for EPS of 29c on revenue of $6.07B. The consensus range is 25c-33c for EPS, and revenue of $6.02B-$6.15B, according to First Call. After reporting better than expected Q2 results, Macy's raised its FY12 EPS view to $3.30-$3.35 from $3.25-$3.30 vs. estimates of $3.40. On its Q2 earnings conference call, Macy's forecast Q3 EPS down relative to last year and guided a higher comp increase in Q4 than in Q3. During the quarter, Macy's reported September SSS up 2.5% on total September sales of $2.358B and said October SSS increased 4.1%, with Q3 SSS up 3.7%. The retailer raised its guidance for 2H SSS growth to approximately 4%, indicating Q4 SSS would increase by approximately 4.2%. The company said it would expand 10 of its existing labels and introduce 13 new brands to target the 13-30 age group. Macy’s also said that Finish Line (FINL)-branded athletic footwear shops would open in over 450 Macy’s department stores in the U.S. and online. Looking ahead, Macy's is expected to offer comments on the upcoming holiday season, and may offer comments on whether it believes Hurricane Sandy will impact holiday shopping.