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Macy’s, Inc. is an American Company that was founded by Xavier Warren in 1929. Macy’s, Inc. is headquartered in New York City, New York. It owns and operates the companies: Macy’s, Bloomingdale’s, and Bluemercury. Each of these businesses have their main stores located in the Manhattan area of New York. As of October 31, 2020, Macy operated 764 stores in the United States, Guam, and Puerto Rico. Macy’s, Inc. is the world’s largest fashion goods retailer and the 36th largest retailer based on the company’s reported retail sales (Deloitte, 2012).
At the end of the fourth quarter, Macy’s revenue was at $25.33 billion, down 1.59% from the previous year. Net income was $354 million, down 49.10%. Earnings per share was 1.81, down 49.16%. Net profit margin was 2.23%, down 48.14%. Operating income was at $1.19 billion, down 22.13%. Net change in cash was – $517.00 million, down 95.09%. Cash on hand $685.00 million, down 41.05%. Cost of revenue was $15.17 billion, down .29% (“Macy’s Inc.”, 2021).
Macy’s stock is traded on the New York Stock Exchange under the symbol M. Its stock closed at $12.59 on 1/20/21. The days stock range was $12.32 to $12.89. The year’s range was $4.38 to $17.67. Market cap is at $3. Volume is $25.26 million. Dividend yield is $12.24.
According analyst at Reuters, Macy’s will not see profits as they did in 2019. Return on Investment is a -26.29. Return on Equity is -18.02. Macy’s is planning to close 125 stores, and in 2020 closed 30 stores. These store closings were already planned before the COVID-19 pandemic hit the US. It will close another 45 stores in 2021. These locations, per Macy’s, are being closed because they are some of the least profitable stores in operation (Staff, 2021).
Even though Macy’s is closing locations, according to reports from the IHL Group, the retail industry is still growing. For every store closing, 5.2 new stores will be opening. In every segment of retail, more companies are opening stores than closing stores (Rosenthal, 2021).
Some retailers were struggling before Covid. Macy’s stock dropped more than 38% in 2020. However, these loses are smaller than they were earlier in the year. Macy’s shares are up over 50% in the last three months with news of the vaccines. Analyst state Macy’s stock is a stock to buy. Analyst have increased their targets on Macy’s stock to $14 per share. Since consumer behavior is changing and the economy is strengthening, consumer spending should increase and reflect those increases in the stock’s price in 2021. Macy’s stocks were up 3%. Even with Covid, Macy’s is expected to change to a higher-growth list of brands. Reducing the number of their least profitable locations, deleveraging debt, and changing their product mix, analyst state that the estimates of the stock are too low and investors should buy (Rivas, 2020).
Deloitte, Switching Channels: Global Powers of Retailing 2012, January 2012, at pp. G11 and G27.
Macy’s Inc (M: NYSE) Stock Price & News. (n.d.). Retrieved from https://www.google.com/finance/quote/M:NYSE
Macy’s to close 45 stores this year. (2021, January 05). Retrieved from https://www.reuters.com/article/us-macy-s-restructuring/macys-to-close-45-stores-this-year-idUSKBN29A2JQ
Rivas, T. (2020, December 18). Macy’s and Kohl’s Stock May Finally Be a Buy. Here’s Why. Retrieved from https://www.barrons.com/articles/macys-and-kohls-stock-may-finally-be-a-buy-heres-why-51608301988
Rosenthal, E. (n.d.). State of Retail. Retrieved from https://nrf.com/insights/economy/state-retail#:~:text=Retail is growing.,4 percent annually since 2010.