Macy's (M) Collaborates With Gap on Sleepwear Collection
Macy’s, Inc. M entered a collaboration with The Gap, Inc. GPS to launch the latter’s extensive collection of sleepwear and intimates for men and women. This marks the first distribution partnership between the two leading companies.
Macy’s share price increased 0.8% yesterday, eventually closing the session at $12.26.
Inside the Headlines
Per the deal, the diversified Gap collection, consisting of various sleepwear and underwear products with sizes ranging from XS to XL, will be available for purchase on Macy’s mobile app, Macys.com and in select stores across the United States. It features a wide range of products, including cozy pajama sets, soft loungewear, Breathe collection, boxers, and undershirts with exclusive designs and colors.
This partnership is in line with Macy's focus on expanding its merchandise offering and delivering customers a seamless shopping experience. As noted, the diversified collection of Gap products will be available at prices ranging from $12.50 to $79.95.
Macy's has been making efforts to deliver customers a seamless shopping experience. Its collaboration with the Swedish buy now, pay later group, Klarna, is enabling the company to offer shoppers financial ease and payment flexibility with their online purchases. The company’s tie-up with DoorDash for expedited delivery service is also encouraging. Markedly, a redesigned mobile app, live shopping functionality and the addition of payment options such as Apple Pay, Klarna Express Checkout, PayPal and Venmo have been making shopping easier for customers.
What’s More?
Macy's delivered lackluster second-quarter fiscal 2023 results, wherein the top and bottom lines declined from the year-ago-quarter. Net sales dipped 8.4% year over year to $5,130 million. Comparable sales fell 8.2% on an owned basis and 7.3% on an owned-plus-licensed basis from the prior-year quarter.
Management took a cautious approach for the rest of the fiscal year, and reaffirmed its annual sales view to reflect the expected macroeconomic impacts. Net sales are projected to be $22.8-$23.2 billion for fiscal 2023. Comparable owned-plus-licensed sales on a 52-week basis are expected to decline 6-7.5% year over year. Digital sales are expected to be about one-third of net sales.
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The Zacks Rank #4 (Sell) stock has declined 9.8% in the past three months against the industry’s growth of 15.1%.
Solid Picks in Retail
We have highlighted a couple of better-ranked stocks, namely Abercrombie & Fitch ANF and Boot Barn BOOT.
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Boot Barn, a footwear, apparel and accessories retailer, currently sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 13.5%, on average.
The consensus estimate for Boot Barn’s current fiscal-year sales suggests growth of 5.1% from the year-ago reported figure.
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Macy's, Inc. (M) : Free Stock Analysis Report
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