Macy's Inc $ 12.88 0.56 (4.55%)
Macy's Inc News and Headlines -
It's the holiday season in the U.S., with Christmas, New Year's and several other seasonal holidays either in progress or just around the corner. This type of year always brings with it a dramatic spike in buying activity, especially for non-essential items.
Normally, this is the biggest time of year for retail companies. According to a research report by Statista, somewhere around $755.3 billion worth of holiday spending will be up for grabs among the ever-competitive U.S. retail sector.
This year, however, the sector is still reeling from the blow dealt by Covid-19, and more consumers than ever are doing
The firm employs a disciplined investment strategy. The team buys growing companies with value fundamentals to combine the best aspects of both strategies. Potential investments must come at a low purchase price and feature good business practices with shareholder-orientated management.
On Nov. 30, the firm sold shares for the second time this year. The Macy's holding was reduced by 21.35% with the sale of 7.49 million shares. During the day of
Macy's Inc. (M) released its third-quarter results before the opening bell on Nov. 19. While the company registered a narrower-than-expected loss, revenue topped projections thanks to robust digital performance.
Quarter in a snapshot
The department store chain recorded a loss of 19 cents per share, which was down from a profit of 7 cents per share in the prior-year quarter but surpassed Wall Street's projected loss of 79 cents per share. Revenue was $3.99 billion, topping expectations of $3.86 billion.
Comparable store sales dipped 20.2%, both on owned and licensed basis. Analysts had projected a 23.3% decrease. The decline was
Macy's (M) continued to struggle as its retail business remains under pressure. The value of its real estate has also been challenged, especially because some of the best properties are in cities like New York and San Francisco that are seeing the biggest impact on commercial rates as people work from home or move to more rural locations.
From [url=https://www.gurufocus.com/StockBuy.php?GuruName=Yacktman+Focused+Fund]Yacktman Focused Fund[/url] ([url=https://www.gurufocus.com/StockBuy.php?GuruName=Yacktman+Focused+Fund]Trades[/url], [url=https://www.gurufocus.com/holdings.php?GuruName=Yacktman+Focused+Fund]Portfolio[/url])'s third-quarter 2020 commentary.
Nike (NKE) recently reported financial results for its first quarter of fiscal 2021. Revenue declined 1% to $10.6 billion, with a 4% increase in footwear offset by a high-single digit decline in apparel. While this was a disappointing result relative to the high-single digit revenue growth that investors have come to expect, it was a meaningful improvement from the fourth quarter of fiscal 2020, when revenues declined 36%. The company's Direct revenues increased low-double digits to $3.7 billion, led by an 82% increase in digital revenues (and triple digit growth in Nike's app monthly active users). As CEO John Donahoe
Apparel stocks span a wide range. There are huge names that top exchange listings and middle performers that rarely draw attention. For companies in both camps, though, Covid-19 came as a shock. Though e-commerce boomed, discretionary spending took a substantial hit, so even apparel brands pegged as top buys at the start of 2020 are having to reposition themselves in hopes of recovering from consumer spending decreases. It's a challenging situation, but brands that can find a way to make the current market work to their advantage have an opportunity to thrive.
Casual versus formal – The great divide
Iconic department store chain Macy's Inc. (M) reported its second-quarter results before the opening bell on Wednesday.
The New York-based retailer, which also owns the Bloomingdale's and Bluemercury brands, posted an adjusted loss of 81 cents per share. This was better than the loss of $1.77 that Refinitiv analysts were anticipating, but down from earnings of 28 cents per share a year ago. Revenue declined 35.8% from the prior-year quarter to $3.56 billion, yet still topped analysts' expectations of $3.48 billion.
Due to store closures related to the Covid-19 pandemic, comparable store sales declined
Macy's Inc. (M) released its second quarter fiscal 2020 results on Sept. 2 before the market opened. While the company registered a narrower-than-expected loss, revenue topped projections thanks to robust digital performance.
By the numbers
The department store chain recorded a loss of $0.81 per share for the quarter, which was down a mammoth 389.29% from the prior-year quarter but surpassed Wall Street's projected loss of $1.77 per share. Revenue was $3.56 billion, topping expectations of $3.48 billion.
Comparable store sales dipped 35.1%, both on owned and licensed basis, up from a decline of 40.2% witnessed in the year-ago quarter.
Macy's (M), which we own more for its real estate value than the retail business, suffered in the first half as expected earnings and cash flow turned into losses due to store closures. Its real estate value was also impacted due to reduced future demand for properties (especially for conversion to office space) and an acceleration of mall closures. We reduced the position at the end of the second quarter on a rebound in the stock price.
From the [url=https://www.gurufocus.com/StockBuy.php?GuruName=Yacktman+Fund]Yacktman Fund[/url] ([url=https://www.gurufocus.com/StockBuy.php?GuruName=Yacktman+Fund]Trades[/url], [url=https://www.gurufocus.com/holdings.php?GuruName=Yacktman+Fund]Portfolio[/url])'s second-quarter 2020 shareholder letter.
We hope this update finds readers healthy and well.
In the first ten weeks of 2020, the U.S. stock market dropped sharply due to business and economic disruption from COVID-19. By early June markets rebounded as optimism over massive amounts of stimulus and lower interest rates triumphed over weak fundamentals and an uncertain economic outlook. We produced solid outperformance versus the Russell 1000® Value Index and lagged the S&P 500®
Shareholders of Macy's Inc (M) and AG Mortgage Investment Trust Inc (MITT) may want to ease up a bit on their holdings, in my opinion, as these stocks have underperformed the S&P 500 index significantly over the past one-year, three-year and five-year periods.
Furthermore, these two stocks have negative recommendation ratings on Wall Street, which means that their share prices are foreseen to continue performing inadequately in the months ahead.
Shares of the New York-based retail store chain company have decreased 66% in the past year, 71% in the past three years and 90% in the past
Shares of Macy's Inc. (M) fell almost 5% on Wednesday after reporting first-quarter revenue of $3.02 billion and a loss of $2.03 per share. It beat analysts' earnings estimates by 47 cents, but fell $700 million short of revenue expectations.
CEO Jeff Gennette had the following to say:
“The first quarter of 2020 was challenging for the country, the industry and Macy’s, Inc. While our stores are re-opened, we expect that the Covid-19 pandemic will continue to impact the country for the remainder of the year. We do not anticipate another full shutdown, but we are staying flexible and
While the coronavirus pandemic has disrupted much of the traditional retail industry in recent months and dampened apparel sales, resulting in a slew of store closures and bankruptcies, there is one corner of the market that is thriving: secondhand clothing.
The secondhand apparel market, which is currently valued at about $28 billion, is projected to reach $64 billion within the next five years according to an annual report compiled by San Francisco-based consignment company ThredUp in partnership with third-party research firm GlobalData Retail.
Although the resale market initially declined along with the wider industry at the start of the
Macy’s (M) 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.
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Ulta Beauty Inc. (ULTA) is a leading specialty retailer in the United States. The company, which was founded in 1990, offers a mix of prestige and mass beauty products through 1,257 stores, as well as online through its website and mobile app (e-commerce accounted for 12% of Ulta's sales in 2019). The company also offers a full service salon in its stores, which meets a need for some customers and can drive business to the other side of the house (selling beauty products). As shown below, the unit count has nearly quadrupled over the past decade – during a period
S&P Global Indices disclosed on April 1 that department store retail giant Macy’s (M) “will be removed from the S&P 500 effective prior to the open of trading on Monday, April 6.” The company will be moved to the S&P 600 SmallCap Index instead, and it will be replaced by Carrier Global Corp. (CARRW), an air conditioning company being spun off of United Technologies (UTX). According to S&P Global Indices, Macy’s no longer belongs on the S&P 500 because of its low market cap and low growth expectations.
During the first three months of 2020, shares of Macy’s fell 71%
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Macy’s Inc. (M) released its fourth-quarter results on Feb. 25 before the market opened. The company posted stronger-than-expected earnings and revenue thanks to “meaningful sales uptick” during the last 10 shopping days prior to Christmas.
The department store chain recorded earnings of $2.12 per share for the quarter, which surpassed analysts’ projections of $1.96 per share. Revenue was $8.34 billion, topping expectations of $8.32 billion.
Comparable store sales dipped 0.5%, both on owned and licensed basis, down from a growth of 0.7% witnessed in the year-ago quarter. The company attributed the decline to warmer weather as well as
Macy’s Inc. (M) could deliver a stock price turnaround after its 33% decline over the past year.
The retailer is improving its loyalty program, upgrading its website and cutting costs to become more efficient.
The department store is improving its loyalty program to make it more accessible to a wider range of customers. For example, earlier this month, it announced that members can now earn rewards points on all of the products sold by the company, including third-party brands.
In addition, Macy's has improved the offers available to its loyalty program members, including
The guru increased the Berkshire Hathaway Inc. (BRK.A)(BRK.B) position by 2.71% in the third quarter and then raised it 4.49% in the fourth quarter. The stock has a weight of 0.38% in the portfolio.
Warren Buffett's famous conglomerate has a market cap of $550.19 billion. Its revenue of $258.750 million has grown 5.20% over the last five years.