Macy’s Is Retail’s Most Unloved Stock And That Might Not Change Anytime Soon

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Macy’s Is Retail’s Most Unloved Stock And That Might Not Change Anytime Soon
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Macy’s has become the poster child for everything that is wrong with mall-based retail, and today’s 3rd-quarter earnings release did little to change that

Macy's says it have a plan to deliver strong holiday results despite a dismal third quarter.Macy’s has become the poster child for everything that is wrong with mall-based retail, and today’s third quarter earnings release did little to change that.

While beating estimates on earnings, Macy’s slashed its guidance for the year and reported its first same-store sales decline in seven quarters. And it was a big decline, with combined owned and licensed sales down 3.5%. That decline looks even worse when reported a day after Target wowed Wall Street with same-store growth of 4.5%.

Macy’s says it is well-positioned for a strong holiday season and that its turnaround plans are working. Some analysts are recommending a buy, betting that the stock has bottomed out and that Macy’s will bounce back over the holidays, as it has done before. But others fear too many Americans are saying, as CNBC host Melissa LeeMacy’s entered today with its stock already down 50% since the beginning of the year, and at its lowest levels since the financial crisis.

Macy’s is investing heavily in its off-price division, Backstage, but that effort highlights the exodus of the Macy’s shoppers of the past to T.J. Maxx and Marshalls. Those stores increasingly seem to be where the frequent Macy’s shoppers of 10 years ago are spending their time today.

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