Macy’s is in the middle of a major transformation, and the latest quarterly results reveal both progress and lingering struggles. CEO Tony Spring is leading the charge to revitalize the department store giant, but the question remains: Will investors have the patience to see the turnaround through?
📉 Mixed Financial Results
Macy’s reported mixed Q4 earnings, with some bright spots but also areas of concern:
✅
Earnings per share (EPS): $1.80 (beat expectations of $1.53)
❌
Revenue:
$7.77 billion (missed expectations of $7.87 billion)
⚠️
Comparable sales: Down 1.1%, but up 0.2% across owned and licensed
businesses
Despite these numbers, investors weren’t impressed, sending Macy’s stock down over 4% in premarket trading.
🏬 Turnaround Plan in Motion
Macy’s is betting big on its "First 50" stores, allocating more resources to these locations. The results?
- Comparable sales in the First 50 stores: +0.8%, marking the fourth straight quarter of growth
- Bloomingdale’s & Blue Mercury sales: +4.8% and +6.2%, showing stronger performance
- Macy’s core stores: -1.9%, still struggling despite turnaround efforts
What’s the strategy?
- Closing 150 underperforming stores
- Improving store experience, staffing, and merchandising
- Expanding the "First 50" model to more locations
💡 Key Takeaway: Macy’s turnaround is gaining traction, but it’s a slow process that requires significant investment—and not all stores are benefiting equally yet.
💰 Investor Pressure & Takeover Rumors
Macy’s is no stranger to
activist investors, and now
Barington Capital
is pushing for:
🔹
Cutting costs
🔹
Selling luxury brands
🔹
Reevaluating its valuable real estate portfolio
👀 The Big Question: Is Barington genuinely interested in turning Macy’s around, or is this another move to squeeze short-term profits out of the company’s assets?
To appease investors, Macy’s announced it will resume stock buybacks with $1.4 billion in repurchase authorization.
🎯 Future Outlook: Can Macy’s Make a Comeback?
Macy’s 2025 forecast is below Wall Street expectations, with projected:
- EPS: $2.05 – $2.25 (vs. $2.31 expected)
- Revenue: $21B – $21.4B (vs. $21.8B expected)
Despite the
challenges, there are
positive signs:
✅
Turnaround strategy is showing early success
✅
Luxury brands (Bloomingdale’s, Blue Mercury) are
growing
✅
Stock buybacks signal confidence in long-term
value
Final Verdict? Macy’s isn’t out of the woods yet, but the turnaround strategy is slowly taking shape. The real question is whether investors have the patience—or if activist pressure will push the company toward a different direction.
🔔 What do you think? Will Macy’s successfully transform, or will activist investors derail its progress? Let’s discuss! ⬇️