15.37 -0.06 (-0.39%)
After hours: 6:25PM EST
|Bid||15.36 x 2200|
|Ask||15.43 x 900|
|Day's range||14.58 - 15.46|
|52-week range||14.11 - 35.06|
|Beta (3Y monthly)||0.64|
|PE ratio (TTM)||4.69|
|Earnings date||21 Nov 2019|
|Forward dividend & yield||1.51 (10.29%)|
|1y target est||17.71|
Struggling Macy's may go into cash preservation mode amid continued sales and profit challenges.
The latest U.S.-China trade war news. President Trump's Apple factory trip. Retail earnings, including Target. And why Applied Materials (AMAT) is a Zacks Rank 1 (Strong Buy) stock right now, all on today's episode of Free Lunch...
Macy's (M) third-quarter comparable sales fall after seven straight quarters of growth. Also, management trims fiscal sales and earnings guidance.
(Bloomberg Opinion) -- It is hard to think of a retailer that is doing so much to save itself, and has so little to show for it, as Macy’s Inc.The department store giant reported Thursday that comparable sales sank 3.9% from a year earlier in the quarter, or 3.5% including licensed departments, a sharp retreat from meager gains it had recorded on this measure in the first half of the year. It was such a weak showing that the company cut its profit forecast and now expects declining comparable sales for the full year.Of course, department stores have been challenged for years because they rely on an older customer and are often tethered to the types of malls that are withering in the e-commerce era. These latest results from Macy’s, though, coupled with a disappointing earnings report from Kohl’s Corp. earlier this week, increase skepticism that the giants of the category can find a formula for success before it’s too late.Macy’s has tried plenty of tactics to boost sales. It has an off-price segment. It is renovating its top-performing stores. It has dramatically expanded its selection online. But the steep decline in sales is a signal that it has not been enough.The company’s press release points to several reasons for the dismal results, including the weather (a go-to excuse for apparel retailers when things go off track) and soft international tourism (which affects sales at its big-city flagships). It also called out “weaker than anticipated performance in lower tier malls.”That third factor is noteworthy because it highlights the trouble with a major component of Macy’s turnaround strategy: The company is currently working to revamp about 150 stores while transforming its weaker locations into so-called “neighborhood stores” that are smaller in size and have fewer employees.The results raise the question of why Macy’s is clinging to these stores in dumpy malls. Macy’s needs to give more serious consideration to closing some of these locations.In other words: Macy’s may be doing a lot of things to salvage its business, but that doesn’t mean they’re the right things.The company said Thursday it will hold an investor day in February to discuss its three-year growth strategy. Any presentation that does not include a roadmap for additional store closures — and a clear plan for improving its actual merchandise — should be dismissed as unlikely to restore Macy’s to health.Kohl’s, a rival, is in a slightly better position than Macy’s, since its stores are typically not located in malls. But its third-quarter results also raised fresh doubts that it has carved a path to long-term relevance.Its new partnership with Amazon appears to be going largely as planned, with executives saying on an analyst conference call that it was “meeting expectations” and that conversion rates were on par with what it saw in pilot markets.But the Amazon arrangement is a creative move that should be providing new, young customers to Kohl’s. If all the retailer can deliver under those circumstances is a 0.4% increase in comparable sales, should that really excite investors about the program’s potential?It’s also discouraging that Kohl’s women’s business is adrift, recording declining sales in the quarter that offset more upbeat sales in departments such as men’s and footwear.Macy’s and Kohl’s shouldn’t delude themselves into thinking their would-be customers are simply sitting on the sidelines. TJX Cos., the corporate parent of Marshalls and TJ Maxx, recorded healthy comparable sales in the quarter. Target Corp. reported Wednesday that its apparel and accessories department saw a “double-digit” increase in sales in the period. It’s clear those better-run retailers are benefiting from Macy’s and Kohl’s stumbles.Building a vibrant 21st-century department store was always going to be a tall order. But Macy’s and Kohl’s latest reports raise the question of whether, for them, that goal is now out of reach.To contact the author of this story: Sarah Halzack at firstname.lastname@example.orgTo contact the editor responsible for this story: Michael Newman at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Macy's (M) delivered earnings and revenue surprises of 600.00% and -2.58%, respectively, for the quarter ended October 2019. Do the numbers hold clues to what lies ahead for the stock?
(Bloomberg) -- Want to receive this post in your inbox every morning? Sign up hereTrade worries dominate despite China reassurance, impeachment inquiry drama, and markets only see a Conservative U.K. election victory. Here are some of the things people in markets are talking about today.Mood soursThe Congressional bill in support of demonstrators in Hong Kong that’s expected to be signed by President Donald Trump is renewing market worries that the confrontation may scuttle the phase-one trade deal. Chinese Ministry of Commerce spokesman Gao Feng said that both sides continue to work towards an agreement, with the country’s chief negotiator Vice Premier Liu He saying that he is “cautiously optimistic.” The Wall Street Journal this morning reported that U.S. negotiators have been invited to Beijing for more talks. Witnesses The most explosive moments of the impeachment inquiry yet included Gordon Sondland, the U.S. ambassador to the European Union, saying yesterday that President Trump effectively directed him to broker a quid pro quo with Ukraine. Sondland testified that “everyone was in the loop,” a revelation that may mean Democrats will push for an appearance from high-profile witnesses like Secretary of State Michael Pompeo or Rudy Giuliani, who have so far refused to cooperate. Today the inquiry will hear from Fiona Hill, the former National Security Council director on Russia and Eastern Europe.War on the wealthyBritish opposition Labour Party leader Jeremy Corbyn will unveil an election manifesto today promising radical changes across the economy, with “bankers, billionaires and the establishment” targeted. For all the noise that the launch is likely to create, markets still only see a Conservative victory in the Dec. 12 vote. There is little sign of any doubts creeping into that view, with sterling volatility remaining anchored in the wake of the first leaders debate. Markets off lowsFears over the Congressional Hong Kong bill were easing somewhat as China held the line on trade progress. Overnight, the MSCI Asia Pacific Index slipped 0.7% while Japan’s Topix index closed 0.1% lower, well off the lows of the session. In Europe, the Stoxx 600 Index was 0.4% lower at 5:45 a.m. with industrial stalwart Thyssenkrupp AG plunging as much as 12% after announcing it was suspending its dividend. S&P 500 futures had recovered to point to a flat open, the 10-year Treasury yield was at 1.762% and gold was lower. Coming up…The minutes of Mario Draghi’s last ECB meeting are published at 7:30 a.m. The November Philadelphia Fed Business Outlook and weekly jobless claims are at 8:30 a.m. More positive news on the housing market is expected in Home Sales data for October at 10:00 a.m. Cleveland Fed President Loretta Mester and Minneapolis Fed President Neel Kashkari are today’s monetary policy speakers. Retailers will be in focus in earnings with Macy’s Inc., Nordstrom Inc. and The Gap Inc. all reporting. What we've been readingThis is what's caught our eye over the last 24 hours.Kissinger says U.S. and China in “foothills of a cold war.” What top delegates are saying about trade at the New Economy Forum. More U.K. mutual funds are managed by guys called David than by women. Thanksgiving Turkey prices at the lowest level in nine years. Getting raided is a cost of doing business for this millionaire. The world’s best performing stock just crashed after soaring 3,800%. Most powerful explosions in the universe even more powerful than previously thought.To contact the author of this story: Lorcan Roche Kelly in Dublin at firstname.lastname@example.orgTo contact the editor responsible for this story: Cecile Gutscher at email@example.com, Sid VermaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investing.com – Wall Street was leery on Thursday after the South China Morning Post reported that upcoming trade tariffs on Chinese goods are likely to be delayed, even if Washington and Beijing fail to sign a deal by Dec. 15, when they are expected to take effect.
Macy’s, the US department store chain, has issued a profit warning for the third time this year after it barely broke even in the third quarter, further darkening the outlook for US shopping malls as they head into the holiday season. The retailer, an anchor tenant in shopping centres across the country with about 680 stores and 130,000 employees, said that it now expected annual earnings to drop by at least a third after quarterly sales fell more than anticipated. Jeff Gennette, chairman and chief executive, said that sales in weaker malls had been particularly disappointing and described the quarter overall as “tough”.
Retail is in focus this week as companies report earnings ahead of the much anticipated holiday shopping season. The Lionesque Group CEO Melissa Gonzalez discusses on YFi AM.
Macy's (M) is currently troubled by its heavy debt, increased competition from online retailers and consumers' waning interest in brick-and-mortar stores.
The latest retail earnings results from the likes of Home Depot. A look at what investors should expect from high-flying Target. And why Tempur Sealy (TPX) is a Zacks Rank 1 (Strong Buy) stock right now...
(Bloomberg) -- Macy’s Inc. slumped the most in three months after confirming that some customers were exposed to a data hack while shopping on its website last month.“We are aware of a highly sophisticated and targeted data security incident related to macys.com that affected a small number of customers during a one-week period in October,” the company said in an emailed statement.Macy’s fell 11%. It was the second biggest decline in the S&P 500 Index on Tuesday, trailing only Kohl’s Corp. which plunged 19% after disappointing investors with its latest quarterly earnings.Kohl’s report renewed concerns on Wall Street that department stores are losing the fight for market share to other retailers. Meanwhile, the Macy’s hack could spook shoppers during the critical holiday period.“Consumers could become guarded, hindering shopping at Macy’s,” according to Poonam Goyal, an analyst with Bloomberg Intelligence.Macy’s, which reports earnings on Nov. 21, brought in a forensic firm to address the threat and reported the incident to federal law enforcement for investigation. In a letter to those affected, the company said credit-card information and other data entered on the checkout page was captured by hackers. Macy’s said the issue has been resolved.In addition to being notified about the hack, affected customers will receive instructions on how to enroll in consumer protection services, Macy’s said.The company didn’t specify how many customers were affected by the breach.The hack highlights the risks that retailers face as shoppers move increasingly online. In the spring of 2018, the parent company of Saks Fifth Avenue and Lord & Taylor, Hudson’s Bay Co., said it had a data security issue at some of its North American stores, and security firm Gemini Advisory reported that over 5 million credit and debit card numbers from the breach were being sold online.Macy’s has been hacked before as well, with a breach affecting a small number of customers last year.(Updates to add share trading and reference to Kohl’s earnings.)\--With assistance from Janet Freund.To contact the reporters on this story: Kiley Roache in New York at firstname.lastname@example.org;Jordyn Holman in New York at email@example.comTo contact the editors responsible for this story: Andrew Martin at firstname.lastname@example.org, Jonathan Roeder, Lisa WolfsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The deluge of retail earnings continued Thursday with disappointing quarterly results out of Macy's. The humbled department store chain was forced to cut its 2019 profit outlook for the second time this year as a measure of in-store sales dropped for the first time in two years. It blamed a delay in cold temperatures for hurting demand for winter clothing and a drop in international travelers who tend to spend big when coming through the doors. Macy's, just like peer Kohl's which reported earlier this week, has struggled for some time to adopt to a changing retail landscape: more customers are shopping at so-called big-box retailers like Walmart and Target, as well as online giant Amazon. All three of those companies posted solid results. Not so for Macy's: quarterly profits plunged from a year ago to just $21 million, though not as bad as feared. But Macy's CEO told investors not to fret over the holidays. It has revamped stores, spruced up its inventory and upgraded its website -and says it is ready to compete for customers during the all-important holiday shopping season, which kicks off next week.