Macy’s, Inc. (NYSE : M)
Macy’s, Inc. (M), an in store and online merchandising and apparel company yesterday reported their November and December sales numbers and updated their 2015 guidance numbers. Macy’s announced same store sales went down 4.7% for the months of November and December. Macy’s now expects fourth quarter numbers (January included) to fall 4.7% compared to previous guidance of a drop of 2% to 3%. Macy’s also now expects full year earnings per share guidance to be $3.85 to $3.90 down from prior expectations of $4.20 to $4.30 per share. Additionally Macy’s also announced a major restructuring plan in which the company will close 40 stores and cut over 4,000 jobs.
Macy’s, Inc. CEO Comments
Comments Regarding Sales and Guidance Numbers :
“The holiday selling season was challenging, as experienced throughout 2015 by much of the retailing industry. In the November/December period, we were particularly disadvantaged by the historically warm weather in northern climate zones where both Macy’s and Bloomingdale’s are especially well-represented. About 80 percent of our company’s year-over-year declines in comparable sales can be attributed to shortfalls in cold-weather goods such as coats, sweaters, boots, hats, gloves and scarves. We also continued to feel the impact of lower spending by international tourists as the value of the dollar remained strong,” said Terry J. Lundgren, Macy’s, Inc. chairman and chief executive officer. Business Wire
Comments Regarding Store Closures:
“In light of our disappointing 2015 sales and earnings performance, we are making adjustments to become more efficient and productive in our operations. Moreover, we believe we can operate more effectively with an organization that is flatter and more agile so we can pursue growth and regain market share in our core Macy’s and Bloomingdale’s omnichannel businesses faster and with more intensity. We will continue to invest in strategic initiatives that anticipate emerging customer needs and create shareholder value,” said Terry J. Lundgren, chairman and chief executive officer of Macy’s, Inc. “The cost efficiencies represent more than two-thirds of our goal of annual SG&A expense reduction of $500 million, net of growth initiatives, from previously planned levels by 2018. In some cases, there will be short-term pain as we tighten our belt and realign our resources. But our eye is on a long-term vision of Macy’s, Inc. as a dynamic retailer that serves existing customers and acquires new ones through innovative approaches to the marketplace.” Business Wire
M Technical Analysis
M gapped up in price yesterday to $36.55, up from the prior day’s close of $36.15, which is a 1% increase in price. Taking a look at the daily chart, we can see the last time M traded above this price level was on January 5th when it traded at $36.96. Taking a closer look at the daily chart we can see that M has been on an overall decline dating back to July 16th when it traded at $72.87. Making that a 50% decrease in price during the 6 month period. M has a float of 313.28 million shares and is trading 1.25 times the normal daily trading volume. M reached pre market highs of $37, but gave back $0.45 at the open, or equivalent to 1%. For trading purposes, my entry point would have been $36.65 looking for a run to $37. My stop loss would have been $36.50, fearing anything below that and the stock would start to fill in the gap up.
Company Profile
Macy’s, Inc., together with its subsidiaries, operates stores and Internet Websites in the United States. Its stores and Websites sell a range of merchandise, including apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. The company also operates Bloomingdales Outlet stores that offer a range of apparel and accessories, including women’s ready-to-wear, fashion accessories, jewelry, handbags, and intimate apparel, as well as men’s, children’s, and women’s shoes. As of September 22, 2015, it operated approximately 885 locations in 45 states, the District of Columbia, Guam, and Puerto Rico, as well as Websites, including macys.com, bloomingdales.com, and bluemercury.com. In addition, it operates as a beauty products and spa retailer. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macys, Inc. in June 2007. Macys, Inc. was founded in 1830 and is headquartered in Cincinnati, Ohio. Yahoo Finance
