|Bid||16.67 x 4000|
|Ask||16.81 x 1400|
|Day's Range||16.60 - 16.89|
|52 Week Range||14.11 - 26.33|
|Beta (5Y Monthly)||0.67|
|PE Ratio (TTM)||5.38|
|Earnings Date||Feb 24, 2020|
|Forward Dividend & Yield||1.51 (9.02%)|
|Ex-Dividend Date||Dec 11, 2019|
|1y Target Est||16.19|
U.S. consumer spending slowed further in January, with sales at clothing stores declining by the most since 2009, a trend that could raise concerns about the economy's ability to continue expanding at a moderate pace. The economy's outlook was also dimmed by other data on Friday showing industrial production decreased for a second straight month in January as unseasonably mild weather depressed demand for utilities, and Boeing suspended production of it troubled 737 MAX plane.
After 75 years of calling the Queen City home, retail giant Macy’s Inc. – America’s department store – is pulling up roots and declaring New York City its sole headquarters. Macy’s is a Fortune 500 company, and with that comes prestige, philanthropy and a large local workforce. Local business leaders say the loss will cost the city dearly.
As e-commerce has eroded its retailing business, owners of the stock have held out hopes for Macy’s real estate. Events moved in their favor last week.
Department store chain Kohl’s Corp. is laying off 250 employees as part of a restructuring plan. The move is part of the retailer’s efforts to have a “more customer-centric focus,” according to a statement from Jen Johnson, the company’s senior vice president of communications. Menomonee Falls-based Kohl’s (NYSE: KSS) expects the restructuring to position the company for long-term success, Johnson said.
The ratings on six P&I classes were affirmed because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), are within acceptable ranges. The rating on one interest only (IO) class, Class X-A, was affirmed based on the credit quality of its referenced classes.
The 435,000-square-foot space that covers the first three floors of the Wanamaker building at 1300 Market St. that is occupied by Macy’s sold for $40 million, according to Philadelphia property records. The Philadelphia Business Journal reported on the transaction in December but the sale price was not yet public. TF Cornerstone Inc., a New York real estate company that owns real estate throughout New York and Washington D.C., bought the retail space.
(Bloomberg Opinion) -- Nordstrom Inc.’s seven-story New York flagship at Broadway and 57th Street is home to a velvet-lined Nike boutique, a facial massage studio, a martini bar in the heart of the shoe floor and lots of expensive new merchandise. That’s how it’s always been at Nordstrom. But last month brought something new with the opening of See You Tomorrow, a luxury apparel resale boutique inside the flagship. Shoppers will find returned and damaged goods sourced from other Nordstrom stores and — because it’s a resale shop — they’re welcome to sell their own high-end apparel for store credit.Nordstrom isn’t the first department store to try resale. In 2019, Macy’s Inc. and J.C.Penney Co. Inc. preceded Nordstrom into the business, lured by younger shoppers concerned with the environmental footprint of their consumption. But long term, resale’s biggest impact on retailing won’t be the growing sections of department stores devoted to used clothes. The most profound shift will be if manufacturers are compelled to make better quality, more durable clothes that consumers perceive as having value in the secondhand economy.Consumers have complained about the declining quality and durability of clothing for decades. But the complaints became louder and more serious as (primarily) Asian manufacturers became adept at quickly meeting consumer demand for low-cost versions of the latest trends. To do so, the manufacturers skimp on quality. For example, they’ll reduce thread counts, making garments more flimsy and less likely to survive multiple wears and washes. Those low-quality garments have no market in resale shops or on resale apps. And the stuff that can’t be resold or recycled is growing faster than the stuff that can. Between 2003 and 2017, the amount of apparel sold globally nearly doubled, while the number of times a garment was worn dropped by more than a third. All that unworn and ultimately unwanted apparel piles up: In 2017, 14.3 million tons of textiles were landfilled or incinerated in the U.S. — a 623% increase over 1970.These facts are increasingly well-known to American consumers, many of whom say they want to buy purpose-driven, sustainable brands. According to ThredUp Inc., a major online fashion resale platform and the primary source for the resale industry’s data, 59% of consumers expect retailers to create clothes ethically and sustainably. It’s impossible to objectively judge how many retailers meet that expectation. More likely than not, it’s a small number and they charge premium prices. So, in the absence of certainty and a willingness to spend, increasing numbers of consumers are opting for a secondhand retail experience. According to ThredUp’s data, the secondhand apparel market — everything from thrift stores to Nordstrom to ThredUp itself — more than doubled between 2012 and 2018, to $24 billion, and should exceed the fast fashion market by 2028. That expansion is being driven across demographics, but especially among those 18-24, 37% of whom said they would buy secondhand in 2019.However, all of this growth is theoretically constrained by two supply bottlenecks. First, consumers need incentives to sell stuff from their own closets. Second, there needs to be enough decent apparel worth selling to keep the market going. The first problem has largely been solved by online platforms like ThredUp and PoshMark Inc., which enable selling (and buying) through intuitive apps.Historically, the second question has been solved by the market. For example, the resale value of a new car is such a crucial consideration for buyers that automakers advertise how well their models retain it — and manufacture accordingly. Today, 40% of consumers say, according to the ThredUp report, that they incorporate resale value into their purchasing decisions beyond just cars, to include items like furniture to apparel. That’s a major shift in consumer behavior.Last year, Ikea announced a rental program that — among other benefits — is giving the cheap flat-pack furniture maker insights into wear and tear. It’s incorporating that information back into its designs, so items can be sold or rented, over and over again. Similarly, clothing rental juggernaut Rent the Runway Inc. shares its data with designers so that they can learn from it. One fashion label executive summarized the findings as: “How many times do our dresses get dry-cleaned and still come back as new?” The answer won’t only affect Rent the Runway. Last month, Nordstrom announced that it would begin selling garments pulled from Rent the Runway circulation at its discount Nordstrom Rack stores. Presumably, they’ll be able to last a few more dry cleans.Of course, shoppers at Nordstrom’s New York flagship can take resale value for granted. But the mere fact that Nordstrom is offering the option to sell back apparel in the same store from which it was purchased marks a profound shift in how consumers, retailers and manufacturers will perceive shopping and ownership. In coming years, that shift should result in better quality stuff for everyone.To contact the author of this story: Adam Minter at firstname.lastname@example.orgTo contact the editor responsible for this story: Stacey Shick at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Adam Minter is a Bloomberg Opinion columnist. He is the author of “Junkyard Planet: Travels in the Billion-Dollar Trash Trade” and the forthcoming "Secondhand: Travels in the New Global Garage Sale."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.
Saks Fifth Avenue owner Hudson's Bay Co on Monday named a president to lead its off-price business, known as Saks Off 5th, the latest example of a department store chain trying to bolster its outlet stores. Until now, the discount apparel unit Off 5th was run by the president of the main Saks Fifth Avenue chain. "We've had mostly department store people running the business," Hudson's Bay Co (HBC) Chief Executive Officer Helena Foulkes told Reuters.
The next couple weeks could help tell the tale as major big box stores prepare to report earnings. Despite that, the National Retail Federation said holiday sales outpaced its own forecast, rising 4.1% from the same period a year earlier to $730.2 billion. “These numbers validate continued optimism for increased investment and opportunity in the retail industry,” NRF Chief Executive Matthew Shay said.
Macy’s Star Rewards now makes it even easier for customers to earn rewards. The new loyalty program now allows every Star Rewards member to earn on every purchase, regardless of how they pay. Plus, customers can enjoy spending rewards on all their favorite products, including top brands. Rewards cannot be earned on or redeemed for gift cards, services or fees.
When U.S. companies contemplate major expansions in the Sunbelt, Atlanta’s Midtown continues to emerge as a routine contender to land those projects. In a recent call with Wall Street analysts, Colin Connolly, president and CEO of Cousins Properties Inc. (NYSE: CUZ), one of the largest office landlords in the South, cited Midtown and downtown Austin as two of the region’s most rapidly urbanizing districts. A lower cost of doing business, cheaper taxes, fewer regulations — that’s been the economic development pitch in the Sunbelt for a while.
Moody's rating action reflects a base expected loss of 4.7% of the current pooled balance, compared to 4.9% at Moody's last review. Moody's actual and stressed conduit DSCRs are 1.50X and 0.99X, respectively, compared to 1.52X and 0.99X at the last review.
Macy’s Inc. is undergoing a business transformation that includes thousands of job cuts and 125 store closures over the next three years. About 30 of the stores have already been designated to be closed.
U.S. job growth accelerated in January, with unseasonably mild temperatures boosting hiring in weather-sensitive sectors, indicating the economy will probably continue to grow moderately despite a deepening slump in business investment. The Labor Department's closely watched monthly employment report on Friday, however, showed the economy created 514,000 fewer jobs between April 2018 and March 2019 than originally estimated. The strong start to 2020 is a boost to President Donald Trump who is seeking a second term in office in the Nov. 3 election, but the biggest downgrade to payrolls over a 12-month period since 2009 showed the labor market was not as robust as the Republican president has boasted.
The Zacks Analyst Blog Highlights: Macy's, Rite Aid, Big Lots, Ross Stores and TravelCenters of America
Macy’s announced it would close 125 stores over the next three years, a good start to a turnaround but experts say there’s much more to do.
Macy’s stock got a boost from the turnaround effort the department store unveiled this week. But one analyst isn’t convinced it will work.