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Macy’s stock Down 13.7% on Q2 Earnings ReportsMacy’s (NYSE: NYSE:M ) has been a staple of American retail for over a century, but in Q2 CY2024, the iconic department store faced a challenging environment that reflected the shifting dynamics of consumer behavior and broader economic trends. Despite delivering a robust earnings performance, Macy’s sales struggled, leading to a revised outlook that has left investors cautious. Key Earnings Highlights In the second quarter of 2024, Macy’s reported a non-GAAP earnings per share (EPS) of $0.53, a significant 80% beat over the $0.29 expected by analysts. This marked a notable improvement from the $0.26 EPS in the same quarter last year. The company also generated $5.10 billion in revenue, slightly surpassing expectations of $5.05 billion, despite being 3.5% lower than the previous year. One of the most encouraging signs from the report was the improvement in gross margins, which rose to 42.3% from 39.8% in the same period last year. This growth was driven by cost-cutting measures, including reduced promotional activity and better inventory management, resulting in a higher EBITDA margin of 8.6%, up from 6.5% in Q2 2023. A Revised Outlook: Caution Amidst Uncertainty Despite these positive earnings figures, Macy’s revised its full-year revenue guidance downward, projecting net sales between $22.1 billion and $22.4 billion. This is a decrease from the previous forecast of $22.3 billion to $22.9 billion, indicating a challenging environment ahead. The company also lowered its full-year EPS guidance to $2.72 at the midpoint, missing analyst estimates by 2%. Macy’s (NYSE: NYSE:M ) CEO, Tony Spring, highlighted the difficulties the company is facing, citing selective consumer spending and an increase in promotional activities as key factors contributing to the lowered forecast. “As the quarter progressed, our customer became more discriminating, which we attribute to ongoing macroeconomic uncertainty and an increasingly complex news cycle,” Spring noted. Consumer Behavior Shifts and Store Closures The retail landscape is evolving, with consumers becoming more discerning about where they spend their money. Macy’s has been attempting to adapt to these changes by closing underperforming stores and focusing on more profitable locations. The company announced earlier this year that it plans to shutter about 150 of its namesake stores by 2027, while investing in the remaining 350 locations. Technical Outlook Macy stock, (NYSE: NYSE:M ), is presently experiencing a notable decline of 13.3%. This decline has resulted in the stock trading below several key moving averages, including the 50-day, 100-day, and 200-day moving averages. The daily price chart reveals a bearish symmetrical triangle pattern, indicating potential further downward movement. Additionally, the stock is currently oversold, which is reflected in a relatively weak Relative Strength Index (RSI) reading of 39.78. This low RSI suggests that the selling pressure may be dominating the market sentiment for Macy stock (NYSE: NYSE:M ) at this time. Interestingly, while Macy’s flagship brand saw a decline in comparable sales by 3.6%, its beauty brand Bluemercury continued to perform well, with comparable sales rising 2%—marking its 14th consecutive quarter of growth. This highlights the divergent performance within Macy’s portfolio, with some segments thriving
NYSE:MShort
by DEXWireNews
MACY's season is coming -- and everyone knows it.As we approached the 2nd half of the year -- the season for buying personal stuff (and giving) is definitely ON. And this past few days is a testament of that as MACY's is registering massive net buy volume. On June 2, the stock net positive volume increased by a whopping +60% from its average numbers signifying an impending price shift to the upside. Daily higher lows was created based on daily data. The stock re-touched the 1.0 FIB level -- the most discounted price you can get. Best price range to seed at this level. Spotted at 15.00 TAYOR Safeguard capital always.
NYSE:MLong
by JSAL
Macy’s Revamps Board with New Directors Amid Acquisition TalksIn a surprising move, Macy’s ( VIE:MACY ) has announced the appointment of two new independent directors, Richard Clark and Richard Markee, while simultaneously continuing discussions with Arkhouse and Brigade regarding a potential acquisition deal. The reshuffle also sees Tony Spring, Macy’s CEO, taking on the additional role of chairman. Richard Clark, a seasoned veteran with four decades of experience in real estate, mergers and acquisitions, and capital markets, brings a wealth of expertise to the board. His tenure at Brookfield Corp. and its predecessors, coupled with his role as Chairman of the Alliance for Downtown New York, positions him as a strategic asset in Macy’s strategic decision-making. On the other hand, Richard Markee, with extensive retail experience including CEO roles and directorships at various companies like Vitamin Shoppe and Toys “R” Us, adds a deep understanding of the retail industry to the board. His presence could be instrumental in guiding Macy’s through the rapidly evolving retail landscape. The timing of these appointments is particularly noteworthy, considering Macy’s ( VIE:MACY ) ongoing discussions with Arkhouse and Brigade regarding a potential acquisition. While Arkhouse and Brigade have withdrawn their director nominations, Macy’s remains open-minded about the best path to create shareholder value. The addition of new directors, coupled with the continuation of acquisition talks, suggests that Macy’s is undergoing a strategic shift aimed at revitalizing its business and enhancing shareholder value. Tony Spring’s acknowledgment of the departing board members, Jeff Gennette and Frank Blake, further underscores the significance of this transition. As Macy’s ( VIE:MACY ) navigates through these changes, shareholders eagerly await further updates on the outcome of the acquisition talks and the company’s strategic direction under the leadership of its revamped board. Will these developments mark a turning point for Macy’s, propelling it toward a new era of growth and innovation? Only time will tell. Technical Outlook Macy ( VIE:MACY ) stock is trading higher above the 200-day Moving Average (MA) with a moderate Relative Strength Index (RSI) of 53. VIE:MACY 's 4-month price chart indicates the start of a Symmetrical triangle pattern attesting to the bullish nature of the stock.
VIE:MACYLong
by DEXWireNews
Arkhouse Pursues Macy's Amidst Talks for Higher BidIn a bid to secure a higher offer from Macy's ( NYSE:M ), investor Arkhouse Management has disclosed ongoing talks with the department store giant for access to due diligence materials. The move comes in response to Macy's characterization of the latest offer as "less than compelling," signaling a potential escalation in the battle for control over the iconic retailer. Arkhouse, along with Brigade Capital, raised their offer to $24 per share on March 3, valuing Macy's at $6.6 billion. However, Macy's board expressed reluctance to transact at this price level, prompting Arkhouse to push for further negotiations and access to crucial diligence materials. According to a regulatory filing, Arkhouse and Brigade have submitted a due diligence request list to Macy's, including customary items necessary to confirm or potentially increase the offer. Negotiations regarding the confidentiality agreement are ongoing, with Arkhouse Management and Brigade awaiting access to the requested materials. With a 4.4% stake in Macy's ( NYSE:M ), Arkhouse Management remains determined to pursue its objectives. The investment firm has nominated nine director candidates, including executives with expertise in retail, real estate, and capital markets, in a move to reshape Macy's board. The proxy battle initiated by Arkhouse underscores the intensifying competition within the retail sector. As traditional retailers grapple with evolving consumer preferences and the rise of e-commerce, strategic investments and boardroom maneuvers become crucial avenues for asserting influence and driving growth. For Macy's, navigating this challenging landscape requires a delicate balance between preserving shareholder value and addressing the demands of activist investors. The outcome of the ongoing negotiations with Arkhouse Management and Brigade Capital could significantly impact the future direction of the iconic department store chain.
NYSE:M
by DEXWireNews
Macy's to close 150 stores Amidst weak 2024 salesMacy's Inc. (NYSE: NYSE:M ) announced a comprehensive restructuring plan on Tuesday, including store closures and cost-saving measures, alongside a forecast for annual sales and profit below expectations. Store Closures and Cost-Saving Measures The department store giant revealed plans to shutter approximately 150 stores through 2026, aiming to streamline operations and save $100 million in costs this year alone. Macy's ( NYSE:M ) shares surged 7% following the announcement, buoyed by quarterly profit beats, although they have trailed behind industry peers in recent times. While the closures represent less than 10% of Macy's annual sales and predominantly target underperforming mall-based locations, the move underscores the retailer's proactive stance in adapting to shifting consumer preferences and economic challenges. CFO Adrian Mitchell emphasized that no additional layoffs were planned due to the closures, offering some reassurance amidst uncertainty. Strategic Vision and Forecast Macy's CEO, Tony Spring, characterized fiscal 2024 as a transition and investment year, expressing optimism for a return to consistent sales and profit growth by 2025. The company also outlined plans to open 15 Bloomingdale's locations and at least 30 new Bluemercury stores over the next three years, focusing on accelerating growth in its luxury brands segment. However, Macy's holiday-quarter comparable sales saw a decline of 4.2%, although it surpassed analysts' estimates, attributed partly to steep discounts that drew in shoppers. Notably, net credit card revenue took a hit, falling 26%, signaling economic pressures among its customer base. Financial Performance and Outlook The restructuring efforts resulted in a $1 billion charge in the fourth quarter, reflecting the company's commitment to realigning its operations for long-term sustainability. Despite the charge, Macy's exceeded earnings expectations, reporting adjusted earnings per share of $2.45, above analysts' estimates. Looking ahead, Macy's (NYSE: NYSE:M ) forecasts net sales between $22.2 billion to $22.9 billion for 2024, slightly below analysts' average estimate. Similarly, adjusted earnings per share are expected to range between $2.45 and $2.85, falling slightly short of expectations. The announcement comes amidst heightened scrutiny from activist shareholders and proxy battles, underscoring the urgency for Macy's to implement decisive measures to reignite growth and regain investor confidence. As the retail landscape continues to evolve, Macy's ( NYSE:M ) remains committed to strategic agility and innovation in navigating challenges and capitalizing on opportunities in the ever-changing market.
NYSE:MLong
by DEXWireNews
MACY'S Weekly Technical AnalysisM weekly - No RECOMMENDATION or ADVICE Status / EDUCATIONAL only - Support, Resistance, Trend Lines, Confluence, Cluster, Modified Schiff Pitchfork, Fibonacci Extension - Hope it Helps, Good Luck DISCLAIMER - This communication is not trading or investment advice, recommendation or solicitation to buy, sell or hold any investment product is provided for informational, educational and research purposes only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The author or persons involved in the conception, production and distribution of this material cannot be held responsible for transactions or any financial loss or damages resulting directly or indirectly from the use or application of any concepts or information contained in or derived from this material. Past performance is not indicative of future results. Any person who chooses to use this information as a basis for their trading assumes all the liability and risk for themselves.
NYSE:M
by BahamasX
Why Macy's Challenges Could Be a Hidden Opportunity Macy's have recently made headlines with significant job cuts, signaling a strategic shift amidst a rapidly changing market. While job cuts often raise concerns, savvy investors may recognize these moves as part of a broader transformation strategy. This article delves into the recent developments at Macy's, shedding light on the potential opportunities that lie beneath the surface for discerning buyers. Macy's Adapting to the Changing Consumer Landscape VIE:MACY 's, an iconic department store, is set to lay off approximately 2,350 employees and close five locations as part of a broader strategy to meet the evolving needs of consumers and the marketplace. This comes as no surprise, considering Macy's previous significant job cuts during the early days of the pandemic. Investment Insight: Macy's commitment to deploying a new strategy demonstrates a proactive approach to stay relevant in the retail sector. While the short-term impact is reflected in a 3% stock dip, forward-thinking investors may see this as an opportunity to acquire shares at a potential discount before the market fully recognizes the benefits of Macy's strategic shift. The Broader Retail Landscape The retail industry has witnessed a wave of layoffs across various sectors, including tech, media, and hospitality. Companies like Google, Amazon, and LinkedIn have also announced job cuts in recent months, reflecting the ongoing challenges and transformations in the business landscape. Conclusion: While the immediate reaction to job cuts and store closures may instigate concerns, astute investors recognize that Macy's are not merely retrenching but strategically positioning themselves for sustained success. By understanding the underlying motives behind these decisions, investors can discern the potential for future growth and capitalize on the current market dynamics. In the ever-changing retail landscape, those with a keen eye for strategic opportunities may find this moment as a promising entry point into the stocks of companies poised for a resilient and prosperous future.
NYSE:M
by DEXWireNews
M Stock Receives $5.8 billion Buyout BidAmerica’s largest department-store chain, Macy's, Inc. (NYSE: M) made headlines when the WSJ reported that it had received a $5.8 billion takeover bid from an investor group made up of Arkhouse Management and Brigade Capital. Macy’s has previously rejected takeovers of this kind, making many wonder if it’ll be the same case with this one. However, these doubts didn’t stop M stock from moving, jumping nearly 20% on the news. The bid raised many questions surrounding the future of Macy’s and the valuation of its assets, and the goals behind the takeover. Is this a fair value for M stock or should Macy's hold out for a better deal? The Offer An investor group consisting of Arkhouse Management, a real-estate investing firm, and Brigade Capital, a global asset manager, jointly made a $5.8 billion offer to buy the department-store chain and take it private, at a valuation of $21 per share. The investors already have a large stake in Macy’s through Arkhouse-managed funds and they believe that Macy’s is undervalued in the public markets and have indicated that it would be willing to raise its offer. The report also revealed that the group has the support of an investment bank that wasn’t named, but it has provided a letter supporting the group’s ability to raise the necessary funds to complete the deal. As for Macy’s’ reaction to the offer, all we know is that the board of directors met to discuss the offer, but it isn’t clear how they feel about it. The $21 per share valuation is a roughly 32% increase from the M stock price of $17.39 on the day the offer was made. However, that is still a far cry from M stock's peak in 2015 when it was trading as high as $70 per share. Clearly, Macy's is no longer in the same place it once was, as represented by the 75% decrease in M stock price, but does that mean that this takeover bid is the best Macy's can get? Macy's Fall from Grace Macy’s was once the largest full-line department-store chain in the U.S. with around 850 stores. It also owns Bloomingdale’s, a higher-end department-store chain with more than 30 locations, and a number of smaller shops under the two banners. Even though Macy’s managed to survive the 2008 recession, it found it harder to get through the rise of online retailers. In 2016, Cowen & Co. analysts said that they were “more confident” that online retailer Amazon would overtake Macy’s in apparel sales, and soon after, Macy’s announced it would close 100 stores within a year. In 2017 and 2018, Macy’s announced more store closures as it lost market share to online competitors. In fact, the department-store chain saw a 4.1% decline in market share in 2017, accompanied by revenues falling by $3 billion between 2012 and 2017. Then, in 2020, as Amazon moved deeper into fashion and online retailers like Shein became increasingly popular, Macy’s said it would permanently close 125 more stores. It’s not just Macy’s that struggled to keep up with the rise of online retailers. In fact, the department-store sector as a whole experienced waves of consolidation and bankruptcy in recent years. The sector's troubles were made worse by the pandemic, and in 2020, JCPenney, Neiman Marcus, and Lord & Taylor all filed for bankruptcy. They later re-emerged as smaller or digital-only players a sign that the transition to online retail has become all but inevitable. While Macy’s survived the pandemic, its stock barely did. When the pandemic hit, M stock saw a nearly 75% decline. Macy’s now operates nearly 500 department stores - a far cry from its 737 stores in 2015 - and the company’s Q3 results show how much it has been struggling. It reported a 7.6% decline in sales, with Bloomingdale’s also reporting a 3.2% decline. During this period, M stock had fallen by about 35% compared with the the S&P 500's 17% gains. When news of the acquisition offer was made public, M stock jumped nearly 20% reaching around $20 - making it clear that Macy’s’ board now has a lot to consider. Is it about Real Estate? By now, you’re probably wondering why a real estate investing group and an asset management firm want to buy a declining department-store chain. They probably have no intention of reviving the department stores, since the department-store sector has been declining for a really long time. When looking at major department stores’ Q3 results, Kohl’s recorded a 5.2% year-over-year decrease in net sales and Nordstorm also saw a decrease of 6.8%. Additionally, consumers are expected to continue abandoning stores and malls, with 24% of retail purchases expected to take place online by 2026. Along with that, the e-commerce market is forecast to total over $8.1 trillion in the same year, a nearly 30% increase from 2023. So, what could the investor group be interested in? The answer is most likely Macy’s’ real estate holdings. Back in 2022, the investment bank Cowen valued Macy's’ real estate holdings in the range of $6 billion to $8 billion, which is close to the price this investment group is offering. Macy's has a really valuable real estate portfolio, highlighted by its iconic location in Herald Square in New York City. This location alone was valued between $3 and $4 billion by various money managers and investors in the past decade. It's hard to imagine a situation in which these investors decide not to sell some of Macy’s’ and Bloomingdale’s real estate assets if this deal goes through. Another potential target for the investors could be Macy’s’ Bluemercury brand, a cosmetics and skincare business that Macy’s acquired in 2015 for $210 million. Although Bluemercury has nearly 160 stores, its unlikely it will face the same treatment as the department-store chains, since this is the only chain under Macy’s actually growing. In fact, Bluemercury reported a 5.8% year-over-year sales growth in Q2 2023, followed by a 2.5% growth in Q3. This is thanks to the cosmetics and skincare industries incredible growth in the US. As is, these industries are expected to grow by 3.54% and 2.99% respectively each year until 2028. Will Macy's Accept? But before investors get too excited over the prospect of a takeover, its worth pointing out that this isn’t Macy’s’ first time being targeted. In fact, Canada’s Hudson’s Bay Co. approached Macy's for a deal in 2017. Like many declining department stores, Macy’s also studied the feasibility of splitting its e-commerce operations from its stores in 2021, but ultimately decided against it. It’s also not the first time Macy’s was targeted for its real estate. In 2015, its shareholder Starboard Value tried to push the company to spin off its real-estate assets, including its famous Herald Square location. When Macy’s hesitated, Starboard sold its entire stake in the company. Then in 2021, shareholder Jana Partners pushed for the e-commerce separation and when it didn’t work out, cut its stake in Macy’s by 84%. So, Macy’s doesn’t exactly have a history of entertaining such offers, and the situation definitely isn’t helped with concerns regarding its asset valuations. Remember, Cowen valued Macy’s’ real estate between $6 billion and $8 billion just last year, and the current bid for the whole company is below $6 billion, so why should Macy’s accept such a lowball offer? Besides that, Macy’s’ flagship store in New York’s Herald Square, is valued at $2 billion all by itself. Some experts have pointed out that since a development is underway in this area which would create a new office tower too, the valuation of $2 billion could already be too low. It’s also important to note that similar stores to Macy’s rejected even higher bids. In 2018, the special committee advising Nordstrom’s board rejected an $8.4 billion bid from the chain’s founding family. Additionally, Kohl rejected a $9 billion takeover bid just last year. If these floundering department chains are rejecting offers greater than Macy's then there's no guarantee that the department store would or even should accept their offer. Could this Buyout Attempt Be Different? Real estate valuations aside, Macy's primary business is clearly beaten down. The company reported a net income of $155 million in Q1, then suffered a net loss of $22 million in Q2, before recording $43 million in net income in Q3. Under its CEO Jeff Gennete, the company has been undergoing turnaround efforts like closing underperforming locations, opening smaller shops, launching new brands and modernizing the company’s supply chain. But, the company’s management clearly sees the value of selling its real estate during a period of stagnation. Under Gennette, Macy’s sold some of its real estate assets between 2015 to 2016, including stores in Brooklyn for $270 million, San Francisco for $270 million, and Minneapolis for $59 million. However things could change once Gennette retires next year and is succeeded by Tony Spring, head of Bloomingdale’s. This change of management and the possibility of going private after an acquisition might make Macy’s willing to sell off more locations. While its not clear whether Macy's will accept the offer, it appears that insiders who knew about it leaked the news to several traders. In the days preceding the announcement, these traders bought OTM call options and volume for calls with a strike of $18 spike significantly on December 5th. One trader even managed to turn $70,000 into roughly $700,000. Traders watching for signs that Macy's will accept or reject the offer should watch the option chain for more activity. For example if someone is buying a significant amount of OTM puts with a close expiration, that could be a sign that Macy's is planning to reject the offer. Technical Analysis Looking at the daily chart, M stock is trading in a downward channel. On news of the buyout offer, M stock broke out of the channel and is trading above the 21, 50, and 200 MAs. It will likely retest the upper trendline which will give investors the opportunity to determine whether or not the downward trend has been successfully broken . Given that the RSI is overbought at 69, the stock will need to recalibrate, giving bullish traders the opportunity to take a position or bears to go short. Fundamentally, its unlikely M stock would exceed the offer price of $21 per share for long. Since the catalyst for this 16% rally was the the takeover offer, M stock will move according to whether the bid is accepted or rejected. Even if the Board rejects this offer, it could announce its decision to proactively consider other offers which may sustain the rally. Considering that M stock will likely retest the upper trendline of the downward channel based on the technicals, and the possibility that the Board may reject the offer, this could be an opportunity to go short. However, even if the acquisition doesn't happen, there are reasons to be bullish. Macy’s is attempting a turnaround strategy that could contribute to its growth, and it has already helped turn Q2’s losses into profits in Q3. If you’re already an investor in M stock, then it could be an opportunity to take a wait -and-see approach. M Stock Forecast Macy’s took a long time to solidify its place as America’s leading department store since its establishment in 1858 as a small dry goods shop in New York. However, business has been declining for as long as a decade as consumers shift to online retailers as the future of shopping. So, Macy’s might not be so exciting as a retailer anymore, but it still has a lot of potential as a real estate play, which could be the reason why investors are offering it $5.8 billion. Whether it’s a lowball offer or not, Macy’s’ board will certainly consider it carefully, especially since it’s operating in a period of stagnation amid other department-store chains filing for bankruptcy. Even though M stock surged at the news, it could be short-term if Macy’s doesn’t accept the deal. Additionally, the company must weigh how disruptive a takeover process could be into the new year. Traders watching for signs that Macy's will accept or reject the offer could get a hint from the option chain. So keep an eye out for any whales buying a significant amount of OTM puts or calls with a close expiration.
NYSE:M
by Penny_Stocks_Today
Macy's $5.8 Billion Buyout Offer Ignited the Stock to SurgeMacy's has received a $5.8 billion buyout offer from real estate investor Arkhouse Management and asset manager Brigade Capital Management. The two firms already have a large position in Macy's through Arkhouse-managed funds, according to the WSJ. Macy's board met to discuss the proposal but it is unclear how the vaunted department store brand views the offer, the close sources say. Meanwhile, the investment group believes M stock is currently undervalued in public markets and indicated it may be willing to raise its offer following necessary due diligence. NYSE:M has been on an upward trend since November, gaining over 48.51% in the last 50 days. Macy's shares rallied 19.5% Monday and premarket trading today following the reports of the Buyout. Investors are still evaluating NYSE:M price, but the stock still has some upward momentum. This is a positive sign for the stock's future value.
NYSE:MLong
by DEXWireNews
Macy’s Stock Surges Despite Recent DeclineKey Highlights Department store chain Macy’s (NYSE:M) reported 3rd Quarter FY2023 results beating Wall Street analysts' expectations , with revenue down 7.3% year on year to $5.04 billion. On the other hand, its full-year revenue guidance of $23.05 billion at the midpoint came in slightly below analysts' estimates. Turning to EPS, Macy's made a non-GAAP profit of $0.21 per share, down from its profit of $0.52 per share in the same quarter last year. Shares of Macy’s Inc. shot up 12.4 percent to $14.17 in premarket trading on Thursday as the retailer showed some unexpected strength on the bottom line as it navigated a tough sales environment. The company’s adjusted earnings per share fell to 21 cents in the third quarter from 52 cents a year earlier. Net income fell 60 percent to $43 million, or 15 cents a diluted share, from $108 million, or 39 cents, a year earlier. Revenues for the three months ended Oct. 28 decreased 7.8 percent to $5 billion from $5.5 billion a year earlier. Technical Analysis (NYSE: M ) is trading near the bottom of its 52-week range and below its 200-day simple moving average. What does this mean? Investors have been pushing the share price lower, and the stock still appears to have downward momentum.
NYSE:M
by DEXWireNews