NEW YORK (TheStreet) -- Shares of Macy's Inc (M) are down 0.98% to $65.38 in midday trading Tuesday, one day ahead of the department store's first quarter earnings release before the opening bell on Wednesday.
The company is expected to earn 62 cents per share on revenue of $6.32 billion for the quarter, according to analysts polled by Thomson Reuters.
In the same quarter of last year, the retailer earned 60 cents per share, while revenue totaled $6.279 billion.
Cramer expects the company to perform well this time, because CEO Terry Lundgren does not like to disappoint.
"We prefer Target to Macy's for Action Alerts PLUS because of the higher growth prospects and the big turn that we think CEO Brian Cornell is progressing fabulously with," he said.
Head of retail at ITG Investment Research John Tomlinson said in a note that Macy's sales seemed to improve over the second half of the first quarter, and updated the firm's sales and comparable store sales forecasts.
Tomlinson now estimates total revenue in a range of between $6.316 billion to $6.442 billion for the first quarter.
ITG expects first quarter comparable store sales growth of 2.4%.
Cincinnati, Ohio-based Macy's is an omni-channel retail company operating stores and Internet websites under the brands Macy's and Bloomingdale's.