Is Macy's struggling financially?
Macy's stock price has dropped 75% from a peak of $73 a share in 2015. Since then, it has closed nearly 300 stores — one third of its stores — and lost $3 billion in annual sales. Macy's fortunes have declined alongside the department store industry.
For the full fiscal year 2023, Macy's revenue declined to $23.1 billion, 5.5% lower compared with 2022. Same-store sales were down 6.9%, as digital and in-store sales dropped 7% and 5%, respectively. Macy's stock jumped more than 4% by midday Tuesday.
Macy's — which includes its namesake banner, Bloomingdale's and Bluemercury — said it expects sales to remain stagnant. It projected net sales of between $22.2 billion and $22.9 billion for this fiscal year, down from $23.09 billion in 2023.
The Wall Street Journal first reported the news on Thursday, adding that the job cuts will total about 2,350 positions, or about 3.5% of Macy's overall workforce excluding seasonal hires.
As of February 23, 2024, Macy's Inc had a $5.2 billion market capitalization, putting it in the 81st percentile of companies in the Retailers - Department Stores industry. Currently, Macy's Inc's price-earnings ratio is 8.3. Macy's Inc's trailing 12-month revenue is $24.0 billion with a 2.9% profit margin.
Macy's report beat expectation, but is still showing the effects of consumer slowdown in spending. The company reported third quarter 2023 diluted earnings per share of $0.15 compared to $0.35 in the third quarter of 2022. Net sales declined 7% as did digital sales.
Total debt on the balance sheet as of October 2023 : $6.19 B
According to Macy's 's latest financial reports the company's total debt is $6.19 B. A company's total debt is the sum of all current and non-current debts.
| Name | Hold | Shares |
|---|---|---|
| Vanguard Group Inc | 12.76% | 34,969,639 |
| Blackrock Inc | 9.17% | 25,142,944 |
| Nomura Holdings Inc | 7.08% | 19,411,781 |
| Dimensional Fund Advisors LP | 4.52% | 12,398,149 |
Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for Macy's Inc stock to perform well in the short-term.
Macy's has announced it has plans to downsize, closing 150 stores. The retailer said it will close 50 locations by the end of 2024 with another 100 closing in the future. CNN reported that by 2026, Macy's plans to have 350 locations when the reorganization is complete.
Is Macy's closing stores in 2024 USA?
The company is closing 150 underperforming stores — 50 by the end of 2024 and the other 100 over the next few years. By 2026, it will have just 350 Macy's stores, the company announced.
The stores that it had already said would be shuttered are located in Arlington, Virginia; San Leandro, California; Lihue, Hawaii; Simi Valley, California, and Tallahassee, Florida. The stores will close in early 2024.
- Macy's Ballston (Arlington, Virginia)
- Macy's Bay Fair (San Leandro, California)
- Macy's Kukui Grove (Lihue, Hawaii)
- Macy's Simi Valley Town Center (Simi Valley, California)
- Macy's Governor's Square (Tallahassee, Florida)
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Weaknesses. Dependence on brick-and-mortar stores: Macy's relies heavily on its physical store locations for sales, making it vulnerable to the decline in foot traffic due to the rise of e-commerce and changing consumer preferences. Brick-and-mortar contributed 67% to its sales in 2022.
It has been a sister brand to the Bloomingdale's department store chain since being acquired by holding company Federated Department Stores in 1994, which renamed itself Macy's, Inc. in 2007.
Arkhouse Management, a real estate investment firm, and Brigade Capital Management, a global asset manager, submitted a bid to buy Macy's for $21 a share, valuing Macy's at $5.8 billion, the Wall Street Journal reported. The deal would pay shareholders a 32% premium above Macy's closing price Friday.
Net sales of $5 billion, down 7% versus the third quarter of 2022. Brick-and-mortar sales decreased 7% versus the third quarter of 2022. Digital sales decreased 7% versus the third quarter of 2022.
In 2000, Dayton-Hudson changed its name to “Target.” Four years later the company sold off its department stores to the May Department Stores Co. And the year after that — the same year Target topped $50 billion in sales for the first time — Federated (soon to be “Macy's″) bought May.
Macy's reported fiscal third-quarter earnings. Profit topped Wall Street estimates as inventory and margins improved. Macy's CEO sounded an optimistic note about holiday shopping.
Is Macys making profit?
Macy's annual net income for 2022 was $1.43B, a 136.26% decline from 2021. Macy's annual net income for 2021 was $-3.944B, a 799.29% decline from 2020.
U.S. Treasury Securities Holders by Type
The largest holder of U.S. debt is the U.S government. Which agencies own the most Treasury notes, bills, and bonds? Social Security, by a long shot. The U.S. Treasury publishes this information in its monthly Treasury statement.
All owned properties are held free and clear of mortgages, per that report, which means the company owns more than 58% of its 722 store locations. Various analysts peg the value of Macy's real estate at $5 billion to $7 billion, with its Herald Square flagship in New York possibly able to fetch over $1 billion.
On Friday, Citi upgraded shares of the 165-year-old department store from Sell to Neutral. Its team initially downgraded Macy's stock after a proposal to take the company private for $21 per share, a 32% premium to its share price, became public in early December.
The estimated net worth of Jeffrey Gennette is at least $18 Million dollars as of 2024-02-20. Jeffrey Gennette is the Chairman & CEO of Macy's Inc and owns about 900,383 shares of Macy's Inc (M) stock worth over $18 Million. Details can be seen in Jeffrey Gennette's Latest Holdings Summary section.
