M - Macy's, Inc.
Chart Events
Gap Up
Performance Outlook
- Short Term2W - 6W
- Mid Term6W - 9M
- Long Term9M+
| Previous Close | 6.83 |
| Open | 6.51 |
| Bid | 6.43 x 1800 |
| Ask | 6.44 x 800 |
| Day's Range | 6.26 - 6.75 |
| 52 Week Range | 4.38 - 23.40 |
| Volume | 50,516,521 |
| Avg. Volume | 36,247,542 |
| Market Cap | 1.97B |
| Beta (5Y Monthly) | 1.56 |
| PE Ratio (TTM) | 3.51 |
| EPS (TTM) | 1.81 |
| Earnings Date | Jul 01, 2020 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | Mar 12, 2020 |
| 1y Target Est | 7.77 |
Fair Value
Related Research
- Bloomberg
Covid-19 Reinforced Our Coffee Addiction
(Bloomberg Opinion) -- The IPO market just got a shot of caffeine from JDE Peet’s BV. Don’t expect other consumer listings to get such a rush.The owner of Peet’s Coffee, Douwe Egberts, Kenco and Tassimo on Friday priced shares in its initial public offering at 31.50 euros, in the upper half of the offering range, valuing the company at 15.6 billion euros ($17.3 billion), and rose to about 35.50 in mid-morning trading.The biggest European IPO this year, pulled off in a swift 10 days, is a remarkable feat for a consumer business in the midst of a pandemic and a looming global recession. But JDE Peet’s has been uncannily well-placed to capitalize on changing consumer habits during lockdown, the prospects for reopening and a resurgence in equity markets. The Dutch company was floated by JAB Holding Co., the investment fund backed by Germany’s billionaire Reimann family. Cornerstone investors, including funds run by George Soros’s firm, had agreed to take up a third of the offering, setting the tone.In a world crowded with coffee chains, JDE Peet’s gets 80% of its sales from coffee that is drunk at home. That meant it benefited as corner cafes shuttered and people working from home were forced to become their own baristas. Now that they can start going out again, it’s ready to serve them their favorite hot beverage too at the Peet’s Coffee chain. And just as Nestle SA benefited from people looking to stock up on the Starbucks-branded coffee it sells in supermarkets, so JDE Peet’s may gain new customers at its cafes if they discovered its products in the grocery store during lockdown. As consumers navigate post-lockdown life, JDE Peet’s looks well insulated. That may explain why the valuation, as of mid-morning trading, is approaching that of Starbucks Corp. on a calendar 2019 enterprise-value-to-Ebitda basis. With consumers likely pulling in their purse strings, homemade coffee may be more popular than pricey takeaway lattes. Yet the valuation may also reflect optimism about reopening, and expectations that people will be eager to get out and about. Early indications from U.S. retailers, such as discount-chain owner TJX Cos Inc. and even department store Macy’s Inc., are that sales have been stronger than expected since Americans were able to shop in person once again.And let’s not forget about the IPO timing with stock markets gaining from their lows in March. That may be one reason why Peet’s was so keen on an accelerated book build: to avoid any sudden market turbulence.The fortunate confluence of factors may not come together for other consumer-facing groups looking to float or spin off a division. L Brands Inc.’s desire to eventually separate its Victoria’s Secret lingerie chain comes to mind. It was grappling with a tired image and too many stores even before the Covid-19 outbreak.As for Peet’s, the successful float leaves it with firepower for further acquisitions. It plans to use the proceeds to cut debt — it aims to reduce the leverage ratio from 3.6 times to below 3 times by the end of the first half of 2021 — but it gets an acquisition currency in the form of equity.Competition for coffee assets has been intense. There was a flurry of deals two years ago with JAB’s $2 billion purchase of Pret A Manger, which sells coffee as well as food to go; Coca-Cola Co.’s $5.1 billion swoop on Costa Coffee; and Nestle’s $7 billion deal for the rights to sell Starbucks coffee in supermarkets.But JDE Peet’s could get lucky here, too, particularly in the market for drinking coffee outside the home. With the lockdown-induced distress in malls and on main streets, it may be able to grab something to go for a better price.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- MarketWatch
States reopen after coronavirus lockdowns: NY, NJ, Pennsylvania announce new rules
Illinois on Friday became the next big state to allow a number of businesses to reopen as states continue to ease restrictions imposed to fight the spread of the coronavirus around two months ago —although Chicago must wait until June 3. Meanwhile, New York City is on track to begin the first phase of reopening on June 8, Gov. Andrew Cuomo said Friday, making it the last part of the state to reach that phase.
- Barrons.com
A Bad Earnings Report for Nordstrom Is Good Enough to Lift the Stock
Disappointing top- and bottom-line results isn’t great news. Yet given how poorly the department-store group has fared, investors may be relieved that today’s report wasn’t worse.
- Barrons.com
Shopping for Macy’s Shares? Better Tread Carefully
While Macy’s stock gained 22% last week, a complex debt deal and sagging sales are reminders that all isn’t well with the department-store chain.
- Moody's
GS Mortgage Securities Corporation II Commercial Mortgages Pass-Through Certificates Series 2010-C1 -- Moody's places on review for possible downgrade and downgrades classes in GSMS 2010 C1; ratings remain on review
Rating Action: Moody's places on review for possible downgrade and downgrades classes in GSMS 2010 C1; ratings remain on review. Global Credit Research- 29 May 2020. Approximately $128 million of structured ...
- Moody's
GS Mortgage Securities Trust 2010-C1 -- Moody's places on review for possible downgrade and downgrades classes in GSMS 2010 C1; ratings remain on review
Rating Action: Moody's places on review for possible downgrade and downgrades classes in GSMS 2010 C1; ratings remain on review. Global Credit Research- 29 May 2020. Approximately $128 million of structured ...
- Moody's
CBL & Associates Limited Partnership -- Moody's downgrades CBL's corporate family rating to Ca; outlook remains negative
Moody's Investors Service, ("Moody's") has downgraded the ratings of CBL & Associates Limited Partnership ("CBL"), including the corporate family rating to Ca from Caa1 and senior unsecured debt to C from Caa3. The rating downgrade reflects Moody's expectation that CBL's liquidity profile will erode rapidly in the next two quarters. The prolonged disruption in retail activities as a result of the coronavirus pandemic will lead to further deteriorating tenant credit profile, a significant challenge for CBL before the pandemic, given CBL's sizable exposure to distressed and defaulted retailers in its top 25 tenant list.
- Bloomberg
$1 Trillion of Corporate Bonds Today, Downgrades Tomorrow
(Bloomberg Opinion) -- The amount of new debt issued this year in the U.S. investment-grade corporate bond market will reach $1 trillion today, by far the fastest pace in history. The implications of that milestone depend on how you look at it.For businesses that had been ravaged by the coronavirus pandemic and the ensuing nationwide lockdowns, access to capital markets was a lifeline to get through the worst of the economic collapse. Sure, Carnival Corp. had to offer interest rates like a junk-rated borrower and Boeing Co. needed to include a so-called coupon step-up provision to offset jitters that it could lose its investment grades. But, in the words of Federal Reserve Chair Jerome Powell, these deals avoided turning “liquidity problems into solvency problems” for brand-name American companies.It’s worth remembering that until the Fed stepped in with extraordinary support for credit markets, averting widespread failures was far from guaranteed. Investors pulled a staggering $35.6 billion and $38 billion from investment-grade funds in the weeks ended March 18 and March 25, respectively. Before 2020, the previous record was $5.1 billion of outflows. I wrote on March 19 that bond markets were veering into a vicious cycle that could get ugly in a hurry — four days later, the Fed announced what would end up becoming a $750 billion backstop for corporate America.Now, the Fed hasn’t actually had to buy any individual bonds yet, a fact that Powell seems proud to share. “We may have to be lending money to those companies, but even better, they can borrow themselves now, and a lot of that has been happening and that’s a really good thing,” he said during May 19 testimony before the Senate Banking Committee.Most people would probably agree with that assessment, at least for the immediate future as the country grapples with restarting the world’s largest economy. But what about the longer-term view?Here, the rampant borrowing paints a more sobering picture. As of late April, 1,287 issuers worldwide rated between AAA and B- by S&P Global Ratings were considered at risk of a potential downgrade, up from 860 in March and 649 in February. That surpasses the previous all-time high set in 2009. “Generally, we expect heavy credit erosion in coming months as issuers, especially those in the lower-rated spectrum come under heavy fire from poor earnings, continued difficulties in managing cost structures, and market volatility creating limited funding opportunities,” said Sudeep Kesh, head of S&P’s credit markets research.That’s bad enough, but doesn’t even strike at the heart of the issue. Last year was supposed to be the beginning of a broad “debt diet” among companies that borrowed huge sums to finance mergers and acquisitions during the longest expansion in U.S. history. That didn’t end up taking place on a wide scale. Even a success story like AT&T Inc., which made headway in trimming its debt stack, still found itself back in the bond market recently, borrowing $12.5 billion on May 21 in what was the biggest deal since Boeing’s $25 billion blockbuster offering.When it comes to companies directly impacted by the coronavirus pandemic or structural changes to their industries, the “big three” of S&P, Moody’s Investors Service and Fitch Ratings haven’t shied away from taking action. Ford Motor Co., Kraft Heinz Co., Macy’s Inc. and Occidental Petroleum Corp. are just a few of the “fallen angels” that lost their investment grades earlier this year.The rating companies haven’t been quite as keen to react to high leverage metrics. I frequently refer back to this feature from Bloomberg News’s Molly Smith and Christopher Cannon, which found that of the 50 biggest corporate acquisitions in the five years through October 2018, more than half of the acquiring companies increased their leverage to a level that would seemingly merit a junk rating but remained investment grade on the assumption that they’d take that leverage down in the coming years. Those expectations seemed ambitious in 2018, when the economy was seemingly invincible. Now, no one can truly expect companies to focus on right-sizing their debt. Corporate leaders are rightfully eager to raise cash to get to the other side of the pandemic, especially with all-in yields not far off from record lows. The vast majority of the $1 trillion in borrowing so far this year was by no means imprudent.In the years ahead, however, the overhang from this issuance spree will inevitably weigh down credit ratings. A company with more debt presents a greater risk of missed interest payments than if it had fewer fixed obligations. Fortunately, for much of the previous expansion, firms had no issue finding investors willing to buy their long-term securities. That practice of rolling over debt and extending maturities might very well be the norm in the months and years ahead, too. Still, if the first five months of 2020 are any indication, investment-grade bondholders will have to get comfortable with even more bloated balance sheets and the prospect of further credit downgrades. For better or worse, with the confidence that the Fed has their back, that seems like a risk investors are willing to take.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Moody's
GS Mortgage Securities Trust 2016-GS3 -- Moody's affirms eight classes of GSMS 2016-GS3
Moody's rating action reflects a base expected loss of 6.3% of the current pooled balance, compared to 3.5% at Moody's last review. Three loans, constituting 22.0% of the pool, have investment-grade structured credit assessments.
- Benzinga
Macy's Announces Pricing Of Its $1.3B Debt Offering As Shares Jump 26%
Macy's Inc. (NYSE: M) on Wednesday announced it has priced a $1.3 billion debt offering at an interest rate of 8.375%.The amount to be raised is $200 million above what the retailer stated earlier on Tuesday. Macy's said the offering for the 5-year bonds is expected to close on June 8.The Cincinnati-based company said the funds raised would be used to repay all outstanding amounts under an existing revolving credit facility.JPMorgan Chase & Co. (NYSE: JPM), Goldman Sachs Group Inc. (NYSE: GS), Bank of America Corp. (NYSE: BAC), and Credit Suisse Group AG (NYSE: CS) acted as book runners for the offering, according to the Wall Street Journal.Retailers Kohl's Corporation (NYSE: KSS) and Nordstrom Inc. (NYSE: JWN) also raised funds in bond offerings in recent week.Macy's stock posted its largest percentage gain in a day on record on Wednesday, as earlier noted by MarketWatch.The jump came as interest in the debt offering showed that investors are still optimistic about a recovery in the retail sector. Macy's has been among the retailers that struggled to return profit even ahead of the novel coronavirus (COVID-19) pandemic.Macy's shares closed 19.6% higher at $7.38 on Wednesday and added another 7% in the after-hours session at $7.90.See more from Benzinga * Macy's Downgraded From S&P 500 To SmallCap 600 Index As Company's Market Cap Shrinks To .5B(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
- MarketWatch
Macy's stock posts the largest percentage gain on record
Macy's Inc. shares surged during the regular session Wednesday, in the largest percentage gain on record, according to Dow Jones Market Data. Macy's shares rose 19.6% Wednesday to close at $7.38. Wednesday's close was the stock's highest since March 13, 2020. Macy's stock has fallen 56% this year as the S&P 500 index has dropped 7.4%.
- Business Wire
Macy’s, Inc. Announces Pricing of Offering of Senior Secured Notes
Macy’s, Inc. (NYSE:M) (the "Company" or "Macy’s") announced today the pricing of an offering (the "Offering") of $1.3 billion aggregate principal amount of 8.375% senior secured notes due 2025 (the "Notes") in a private offering at an offering price of 100% of the principal amount thereof, which represents a $200 million increase in the previously announced size of the Offering. The Notes will be senior, secured obligations of the Company. The Notes will be secured on a first-priority basis by (i) a first mortgage/deed of trust in certain real property of subsidiaries of Macy’s that has been or will be transferred to subsidiaries of Macy’s Propco Holdings, LLC, a newly created direct, wholly-owned subsidiary of Macy’s ("Propco") and (ii) a pledge by Propco of the equity interests in its subsidiaries that own or will own such transferred real property (together, the "Collateral"). The Notes will be, jointly and severally, unconditionally guaranteed on a secured basis by Propco and its subsidiaries and unconditionally guaranteed on an unsecured basis by Macy’s Retail Holdings, Inc., a direct, wholly-owned subsidiary of Macy’s.
- Yahoo Finance
How toilet paper and hand sanitizer may surprisingly save these 3 retailers
Post coronavirus it's all about location. Location, Location.
- Motley Fool
Why Macy's, Gap, and Other Retailers' Stocks Are Up Today
Shares of several brick-and-mortar retailers were trading higher on Wednesday morning as the broader market rallied for a second day on rising optimism about the post-pandemic economy. Designer Brands (NYSE: DBI) was up 5.2%. Gap (NYSE: GPS) was up 5.5%.
- Barrons.com
Macy’s Is Gaining, Disney Is Higher, and Hope for Back-to-Work Payments Is Lifting the Dow
Stock in Macy’s, Walt Disney, and Boeing gained ground as all three companies revealed responses to the coronavirus crisis.
- Financial Times
Macy’s: land grab
Would it be Thanksgiving without the parade down Broadway sponsored by Macy’s? Macy’s is no different. Macy’s owns many of its store locations and could have exited or de-emphasised its business model as a clothes merchant.
- Barrons.com
Macy’s Bond Deal Will Raise Cash, and Risks for Investors
The department store wants to sell $1.1 billion of bonds backed by real-estate holdings, but it is just one step in a series of complex changes that mean investors should take extra caution.
- MarketWatch
Coronavirus update: Global case tally crosses 5.5 million as WHO warns of risk of ‘second peak’ in current infection wave
The global case tally from the coronavirus that causes COVID-19 climbed above 5.5 million on Tuesday, as the World Health Organization warned of the possibility of an immediate “second peak” in infections from the current wave, if countries and local governments ease measures to contain the spread too soon.
- SmarterAnalyst
Macy’s Spikes 17% On Refinancing Plan To Weather Coronavirus Crisis
Shares in Macy’s, Inc. (M) spiked 17% after the embattled U.S. department store chain said that its refinancing plans will generate “sufficient liquidity” to fund operations until at least fiscal 2021.Macy’s stock surged 17% to $6.11 in midday U.S. trading. As part of the refinancing plan, Macy’s plans to raise $1.1 billion in aggregate principal amount of senior secured notes due 2025. Proceeds of the sale, along with cash on hand, will be used to repay all of the outstanding amounts under its $1.5 billion revolving credit facility.The notes will be secured by a number of real estate assets, including three urban properties - Downtown Brooklyn, Union Square and State Street - and 35 stores located in select malls and 10 distribution centers.Once its credit facility is paid off, Macy’s will enter into a new $3 billion revolving credit line, including a $300 million revolving bridge credit facility that will mature at the end of 2020. The credit facility will be backed by the majority of Macy’s owned inventory and will mature in 2024.“Upon the completion of the bond offering, as well as our entry into the credit facility, we expect to have more than sufficient liquidity to fund our operations and retire upcoming debt maturities in fiscal 2020 and fiscal 2021,” Macy’s said in a statement.Macy’s share price nosedived 64% this year after government restrictions to contain the spread of the coronavirus pandemic forced the closure of all of the department chain’s stores and depressed retail sales.All of the 775 stores of the department chain had been closed since March 18 with some slowly reopening. In an effort to preserve cash, Macy’s had suspended its quarterly dividend, drawn down on its credit line, frozen both hiring and spending, stopped capital spending, canceled some orders and extended payment terms.Five-star analyst Paul Trussell at Deutsche Bank last week cut Macy’s price target to $5 from $7, citing the management’s expectations that Q2 EBITDA will likely be below Q1 and that margins could be worse. The analyst maintained a Hold rating on the stock.Overall, Wall Street analysts have a bearish stance on Macy’s stock. The Moderate Sell consensus is based on 7 Sell ratings and 3 Hold ratings. The $4.89 average price target implies 20% downside potential in the shares in the coming 12 months. (See Macy’s stock analysis on TipRanks). Related News: Beleaguered Hertz Sinks 36% In After-Market On Bankruptcy Protection Filing Starbucks Regains Almost Two-Thirds Of U.S. Same-Store Sales As Stores Reopen Foot Locker Earnings Miss On All Counts; Stock Down 6% In Pre-Market More recent articles from Smarter Analyst: * Elon Musk Reaps Payout Worth $775M, As Analyst Admits Tesla Is ‘Turning A Corner’ * Costco Pulls Back On Earnings; Top Analyst Sees Buying Opportunity * Cisco To Buy ThousandEyes For Reported $1B; Top Analyst Sees Strong Synergy Potential * Salesforce Sinks 3.5% After-Hours As Guidance Slashed
- Yahoo Finance
Target CEO: We want to be the safest place to shop in America
Don't expect safety measures will fall by the wayside at Target once life gets back to some form of normal after the COVID-19 pandemic. Here's what Target's chairman and CEO Brian Cornell told Yahoo Finance.
- Yahoo Finance
Target CEO: 'America was back in our stores shopping' after stimulus checks
Target Chairman and CEO Brian Cornell weighs in on the state of the retailer amidst the coronavirus pandemic in a Yahoo Finance interview.
- Motley Fool
Why Nordstrom, Ralph Lauren, and Urban Outfitters Stocks Are Rising Today
Shares of several upscale retail-chain operators were rising on Tuesday, on growing investor optimism after Macy's (NYSE: M) announced a significant refinancing deal. News that troubled department-store giant Macy's has secured a major refinancing deal seemed to be giving investors reason to bid up battered retail stocks on Tuesday.
- Moody's
May Department Stores Company (The) -- Moody's downgrades Macy's CFR to Ba3; assigns Ba1 to proposed senior secured notes
Moody's Investors Service, ("Moody's") downgraded Macy's, Inc.'s ("Macy's") corporate family rating to Ba3 from Ba1. At the same time its probability of default rating was downgraded to Ba3-PD from Ba1-PD. The senior unsecured ratings at Macy's Inc., Macy's Retail Holdings, Inc. and May Department Stores Company (The) were also downgraded to B1 from Ba1.
- Motley Fool
Why Macy's Stock Is Rising Today
Shares of Macy's (NYSE: M) are moving higher today, up about 8.1% as of 10:15 a.m., after the company announced a refinancing plan that includes a $1.1 billion secured note offering and a new $3 billion line of credit. Macy's said that it is offering $1.1 billion in senior notes secured by some of its real estate assets, including three New York City properties, 35 mall stores, and 10 of its distribution centers. Macy's will use the proceeds of the notes, which mature in 2025, along with some of its cash on hand to pay off its current $1.5 billion line of credit.
- Motley Fool
Macy's Names Interim CFO. Will It Help?
While Macy's (NYSE: M) preliminary quarterly forecast showed a huge decrease from 2019, the retailer still has a chance for improvement. The company has made all sorts of adjustments to stem the hemorrhaging of sales and recently announced it has named a new interim CFO. Current CFO Paula Price announced her departure in April and is set to leave on May 31.
