34.80 -0.06 (-0.17%)
After hours: 6:32PM EDT
|Bid||34.85 x 1100|
|Ask||34.86 x 800|
|Day's Range||34.63 - 35.82|
|52 Week Range||25.01 - 67.75|
|Beta (3Y Monthly)||0.71|
|PE Ratio (TTM)||11.50|
|Forward Dividend & Yield||1.48 (4.17%)|
|1y Target Est||N/A|
(Bloomberg Opinion) -- Macy’s Inc. is having a miserable year. With meager sales growth and a lackluster annual forecast, it is currently the worst-performing stock in the S&P 500 Index.It’s not as if the venerable chain isn’t trying. Macy’s has undertaken a wide array of turnaround efforts, including an expansion of its off-price Backstage business and a dramatic increase in its online selection. And there are clearly forces beyond its control, with the so-called retail apocalypse looming over the entire industry.All that said, there is more that Macy’s could do to improve its prospects. Here are four things the company should do right now.Strengthen its private-label apparel brands. These make up about 20% of the chain’s sales, and it could benefit from driving that share higher. Macy’s has said it is working on improving its sourcing of these garments. But it ought to go further, launching new brands and scrapping tired ones. When Target Corp. undertook a successful overhaul of its private-label clothing business, there were no sacred cows: In fact, two of its biggest, Merona and Mossimo, were dumped. Without seeing sales and profit figures for each Macy’s brand, it’s hard to know exactly which ones should be on the chopping block. But, to my eye, INC International Concepts looks ripe for a rethink. There are a whopping 633 different women’s tops under this label on Macy’s website as of this writing — an unnecessarily huge assortment that ranges from bohemian soccer mom to “Love Island” contestant. Who exactly is the customer for this? If Macy’s can’t answer that clearly, it should go. With Story, do it right or don’t bother. I was optimistic about this idea as a potential driver of foot traffic, as it is supposed to be an Instagram-friendly, gallery-like display space that brought frequent newness to a store. My latest visit to a Story shop-in-shop, however, soured me on its potential. Some of the décor for the newest back-to-school-themed display appeared to be leftovers from the previous outdoors-themed display. If Macy’s wants this thing to work, it has to invest enough to make each iteration different from the last. Either devote more resources to Story, which started just last spring in a few dozen stores, or scrap it. Speed up store renovations. Macy’s will have renovated 150 stores by the end of 2019, part of a prudent initiative it began in 2018 to give its most productive outposts new fixtures, better in-store technology and more localized merchandise. The company plans to do more of these renovations in 2020 and says these makeovers, which cost about $3 million a pop, could eventually go to as many as 350 stores. I’d recommend Macy’s not let the next 150 remodels take as long as the first 150. The spiffed-up stores are outperforming the rest of the fleet, so it’s a no-brainer to invest quickly in a wider rollout. Refine the vision for the rest of the store portfolio. There are hundreds of Macy’s stores that won’t be getting the splashy upgrades described above. Macy’s is calling these leftovers “neighborhood stores,” and executives plan to reduce them in both size and number of employees. I get why Macy’s doesn’t want to close them, as it finds it difficult to make those sales transfer to e-commerce or a nearby store. But the company will come to regret hanging onto dreary locations in dying shopping centers. Macy’s should consider something closer to Nordstrom Inc.’s strategy with Nordstrom Local, in which it is opening tiny service centers where customers can return or pick up online orders or have an appointment with a stylist. Locations for these Nordstrom outposts are being selected with digital shopping in mind. That may be more effective than Macy’s trying to repurpose real estate built for the shopping landscape of the 1980s or ’90s.To contact the author of this story: Sarah Halzack at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Nordstrom (JWN) inaugurates store at the SoNo Collection mall in Norwalk and introduces Express Services to facilitate in-store and online shopping.
The past trend shows that holiday season shopping euphoria is losing its craze, per Coresight. These retail ETFs may be hit hard if that be the case.
(Bloomberg Opinion) -- Bed Bath & Beyond Inc.’s sales have withered in recent years for a variety of internal reasons, but it has also suffered because of punishing competition from Target Corp. Now the beleaguered home-goods chain will try to get some of that Target magic for itself.Bed Bath & Beyond announced its new CEO Wednesday evening: Mark Tritton, chief merchandising officer at Target since 2016. Target’s recent turnaround is partly based on better merchandising in its home-goods department.This is an impressive poaching effort and a promising development for a chain that badly needed new leadership after longtime CEO Steven Temares — who finally departed earlier this year after a bruising activist investor fight — drove the company into a rut, with outdated stores and a sluggish move toward e-commerce.Tritton is a good fit for the role, given Bed Bath & Beyond’s needs. As Target’s chief merchant, he oversaw the rapid-fire development and rollout of more than 30 private-label brands, many of them in the home-goods category. Before Target, he was a senior executive at Nordstrom Inc., where he supervised the design and manufacturing of a stable of private brands.A stronger selection of private brands is essential to a Bed Bath & Beyond turnaround. These products could differentiate the chain from its competitors and, crucially, tend to be more profitable. That would be an enormous help for a chain that has decimated its gross margins in recent years.Bed Bath & Beyond has recently awakened to the role a stronger private-label offering could play for its business, with a pledge to debut six new such brands by 2020. So far, however, they’re unimpressive: One of its first launches, a line called Bee & Willow, lacked the charm and aspirational presentation that Target typically nails.Tritton also was in the C-suite at Target when it was working its way out of a rough patch in its pricing strategy for everyday essentials. The retailer recovered by tamping down on excessive promotional blitzes and focusing on lower everyday prices. Bed Bath & Beyond, with its tired buffet of 20% off coupons, could use a similar reassessment.Lastly, Tritton led merchandising at Target during a time of significant changes to in-store presentation. Sight lines have been lowered, produce is displayed in sleek wooden bins, and the beauty department now has a Sephora-like sleekness. Bed Bath & Beyond stores are cluttered mazes that could greatly benefit from an overhaul, which Tritton could oversee.Of course, merchandising is just one aspect of a potential Bed Bath & Beyond turnaround. Tritton’s resume is less reassuring about other key parts of the job. For example, the company has rightly been exploring strategic alternatives for its smaller chains, such as Cost Plus World Market and Christmas Tree Shops. It’s unclear how deft he’ll be at handling those potential divestitures.Tritton will face other challenges, too — especially at a company that is already cutting jobs and closing stores, which are not exactly morale boosters for employees.Overall, though, investors should be optimistic about Tritton’s arrival. Bed Bath & Beyond is in bad shape, but it is not beyond repair. He could be the one to pull off this home makeover.To contact the author of this story: Sarah Halzack at firstname.lastname@example.orgTo contact the editor responsible for this story: Michael Newman at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Nordstrom, Inc. (JWN) is a leading fashion retailer based in the U.S., explains David Fried, editor of The Buyback Letter, which, as its name suggests, focuses exclusively on stocks that are actively undergoing buyback and stock repurchase programs.
The Puget Sound Business Journal is proud to unveil the 2019 Women of Influence honorees, putting a spotlight on the most influential women in the region's business community.
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As the S&P 500 trades near record highs in 2019, Goldman Sachs says that a select group of reasonably priced, high-ROE growth stocks will lead the market in the coming months. Goldman says this superior performance will occur despite major pressure on ROE at most companies. "While stocks with low volatility and strong balance sheets still trade more than 2 standard deviations expensive relative to the past 10 years, stocks with high returns on capital carry more reasonable valuations," said Goldman in its latest US Weekly Kickstart report.
Macy’s (M) stock offers a stellar dividend yield of 9.8%. However, the company's dividend yield is high due to the sharp decline in its stock price.
After a Wall Street Journal story hit the retailer over its poor stock performance over 2019, the company could bring solid returns for strategic investors.
Levi's reported earnings after the bell yesterday that beat analyst's expectations, yet saw profit fall by 4%. Specialty Retail Consultant at JJK Research Janet Kloppenburg joins Yahoo Finance's Alexis Christoforous and Brian Sozzi to discuss.