M Preview: Still in Restructure Mode By Scott Rothbort RealMoney Contributor 5/13/2008 2:36 PM EDT

Macy's (M) , the large-box mall-based retailer, is scheduled to report first-quarter 2008 results before the market opens on Tuesday and will conduct its quarterly conference call later that morning.

Analysts expect the company to lose 2 cents per share on net sales of $5.63 billion. In the year-ago quarter, it earned 16 cents per share on net sales of $5.92 billion.

Macy's and peers JCPenney (JCP) and Sears (SHLD) are operating in the wrong segment of the retail market for the current environment.

That being said, Macy's has its own unique problems. The company is still digesting acquisitions while at the same time continuing to open or planning to develop new stores. Recently, the company announced that it will close its Bloomingdale's catalog business while devoting more resources to that brand's Web site.

I would expect Macy's to inform us of poor margins due to markdowns, weak same-store sales and more cost-cutting in order to maintain profitability. Despite the shares trading at a multiyear low, I would not advise buying them here. Any pop off of the earnings call will likely be short-covering and not an entry point.

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At the time of publication, Rothbort was long Sears Holdings, although positions can change at any time.

Scott Rothbort has over 20 years of experience in the financial services industry. In 2002, Rothbort founded LakeView Asset Management, LLC, a registered investment advisor based in Millburn, N.J., which offers customized individually managed separate accounts, including proprietary long/short strategies to its high net worth clientele. He also is the founder and manager of the social networking educational Web site TheFinanceProfessor.com.

Immediately prior to that, Rothbort worked at Merrill Lynch for 10 years, where he was instrumental in building the global equity derivative business and managed the global equity swap business from its inception. Rothbort previously held international assignments in Tokyo, Hong Kong and London while working for Morgan Stanley and County NatWest Securities.

Rothbort holds an MBA in finance and international business from the Stern School of Business of New York University and a BS in economics and accounting from the Wharton School of Business of the University of Pennsylvania. He is a Term Professor of Finance and the Chief Market Strategist for the Stillman School of Business of Seton Hall University.

For more information about Scott Rothbort and LakeView Asset Management, LLC, visit the company's Web site at www.lakeviewasset.com. Scott appreciates your feedback; click here to send him an email.

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