Macy’s (M, Financial) declined along with much of the retail sector as the company temporarily closed all of its stores. Macy’s needs to manage through significant challenges of reducing seasonal inventory levels, handling payables, and debt levels. The company’s significant real estate value should help manage the near-term challenges, especially as Macy’s earns substantial profits in the Christmas season, which is still a ways off. The company is one of the top ten ecommerce companies, which should help sell through inventory and generate cash even while stores are shut.
From the AMG Yacktman Fund (Trades, Portfolio)'s first-quarter 2020 shareholder letter.
