Morgan Stanley analyst Kimberly Greenberger said the 11c EPS beat reported by Macy's compared to consensus was driven by lower taxes, real estate gains and credit card revenue growth outperformance. However, she estimates that Macy's had a 0% core retail operating margin in Q1 and noted that its trend of shrinking core retail EBIT dollars, which began in 2015, has continued. The company's same-store comparisons were the easiest of the year in Q1 and Macy's laps significantly more difficult comparisons in the second half, said Greenberger, who sees "little room for error." She maintains an Underweight rating on Macy's shares and lowered her price target on the stock to $20 from $22 after lowering her 2022 and 2023 gross margin estimates due to expectations for higher e-commerce delivery expenses.