Luxury department store chain Nordstrom (NYSE:JWN) will be reporting earnings tomorrow after market close. Here's what to look for.

Last quarter Nordstrom reported revenues of $3.77 billion, down 7.9% year on year, beating analyst revenue expectations by 2.1%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates. On the other hand, revenue continues to decline year on year and margin performance was roughly flat year on year, meaning no improvement in gross or operating margins.

Is Nordstrom buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Nordstrom's revenue to decline 3.6% year on year to $3.42 billion, a further deceleration on the 2.5% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.13 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.8%.

Looking at Nordstrom's peers in the general merchandise retail segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Dillard's's revenues decreased 4.4% year on year, missing analyst estimates by 1.1% and Macy's reported revenue decline of 7.3% year on year, exceeding estimates by 4.3%. Dillard's traded up 2% on the results, Macy's was up 4%.

Read our full analysis of Dillard's's results here and Macy's's results here.

There has been positive sentiment among investors in the general merchandise retail segment, with the stocks up on average 8% over the last month. Nordstrom is up 10.9% during the same time, and is heading into the earnings with analyst price target of $17.8, compared to share price of $15.2.

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The author has no position in any of the stocks mentioned.