|Bid||24.85 x 1000|
|Ask||24.90 x 1100|
|Day's Range||24.85 - 25.35|
|52 Week Range||24.05 - 41.99|
|Beta (3Y Monthly)||0.34|
|PE Ratio (TTM)||4.55|
|Earnings Date||Feb 26, 2019|
|Forward Dividend & Yield||1.51 (6.01%)|
|1y Target Est||27.14|
Is the worst behind Macy's? Is Macy's debt dilemma over? With CNBC's Melissa Lee and the Fast Money traders, Tim Seymour, Karen Finerman, Steve Grasso and Guy Adami.
Action Alerts PLUS charitable trust portfolio manager Jim Cramer identified five themes investors should look out for in the first quarter during his monthly conference call with AAP members this week. Cramer's first theme identified the retail sector as the sleeper segment investors should expect to breakout in the coming months as headwinds that have slowed growth begin to dissipate. 2. By pushing off the trade deadlines - something that will most likely happen again - the president has given business more time to shift supply chains out of China," Cramer told AAP members.
One major S&P 500 stock has been shut out of the market's rebound, and it could fall even more before finding support.
These days, the retail sector is a cut-throat bloodbath. The rise and continued growth of online shopping and omnichannel operations have completely changed the game for the sector. A number of once top brands and stores have closed or filed for bankruptcy. That's not only hurt retail stocks but the retail REITs that own malls and power centers.And it's going to get worse before it gets better.During their latest conference call, one of the top mall REITs -- Simon Property Group (NYSE:SPG) -- warned that, "there are some retailers out there that we're nervous about" and that they "are concerned about a few [retail bankruptcies] that should shake out in the first quarter."InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhat's scary is that SPG is one of the top mall REITs around and features malls in so-called prime or "A" markets. These places are dominated by high-incomes, steady home prices, and relative economic stability.If Simon is finally starting to get worried, what does that mean for the mall REITs that don't own such prime assets? These REITs are certainly in big trouble as the shift in retail continues. * Should You Buy, Sell, Or Hold These 7 Medical Cannabis Stocks? But which retail REITs are in a precarious position? Here are 3 that could see declines and issues in the quarters ahead.Source: Shutterstock CBL & Associates (CBL)The recession could have been the first punch to CBL & Associates (NYSE:CBL) that staggered the firm in a big way. After the recession, CBL's portfolio of Class B malls were some of hardest hit and full of the chain stores that were in the first wave of retail causalities. Because of that, the mall REIT was faced with the difficult task of filing plenty of empty store frontage in a terrible environment. Unfortunately, it wasn't able to do that. Its core audience of shoppers has simply migrated to discounters like Target (NYSE:TGT) or online.And that continues to hurt its bottom line.During CBL's last earnings report, rising vacancy rates and retailer bankruptcies managed to reduce overall rents per square foot by 10.8% for all leases signed in 2018. That caused a big $41.8 million year-over-year decline in the amount cash CBL can pull in from its tenants. That's a big deal as that directly translates into a REIT's Funds from Operations (FFO) metric. And you know what FFO translates into? Dividends.With a 19.6% year-over-year decline in FFO, CBL was forced to cut its dividend payout to investors. This is now the second cut in about year.With more bankruptcies, store closures and lower consumer demand predicted, CBL is one retail REIT to avoid.Source: Shutterstock Washington Prime (WPG)Back in 2014, Simon could see the writing on the wall and spun-out some of its open-air shopping plazas and less than desirable malls as Washington Prime (NYSE:WPG). WPG later bought Glimcher Realty Trust 0- an owner of mostly Class B and some Class A properties. The problem is, WPG is still very much exposed to the pending retail apocalypse.As of September -- when WPG last reported earnings -- Sears (OTCMKTS:SHLDQ) was one of Washington Prime's largest tenants. As are Macy's (NYSE:M) and J C Penney (NYSE:JCP). The trio of struggling retailers makes up around 102 different locations in WPG's malls. WPG has been proactive in filling locations when they come up vacant -- Bon-Ton was another large tenant in its system. That's great, but it may not be enough.Moody's estimates that the department store sector will contract by a further 3.5% in 2019, while the overall number of store closings is set to surge -- with mall staples like the Gap (NYSE:GPS), Children's Place (NASDAQ:PLCE) and now bankrupt Gymboree all planning on closing hundreds of locations. This is exactly the kinds of stores that dot WPG's malls and shopping centers. * 5 Entertainment Stocks That Can Weather a Market Storm With rents falling slightly and FFO metrics being flat, Washington Primes management has stubbornly kept its dividend high. While WPG isn't in as bad of a shape as CBL -- thanks to some of its A properties -- I'm not sure I'd want to own it in the current environment. Especially when there are other retail REITs out there worthy of attention.Source: Ser Amantio di Nicolao via Wikimedia Pennsylvania REIT (PEI)Truth be told, Pennsylvania REIT (NYSE:PEI) or PREIT as it's commonly called is in the best shape of the retail REITs on this list. The mall owner got smart after the recession and started to purge its assets of underperforming malls. Those asset sales and closures helped PREIT get back on a great footing, improve sales per square foot and rents. Heck, even Sears isn't a problem as the REIT only holds four Sear's stores in its portfolio.The problem is, PEI is still operating in the economically sensitive A/B property range.Sales per square foot at PEI's locations now run about $500. That's a marked improvement over just a few years ago. However, when looking at some of Simon's top malls, that number is kind of low. Top A malls in SPG's portfolio typically pull in $1,000 to $1,200 sales per square feet. The point is, you're still dealing with a customer at PEI's locations that could be impacted during the next recession.Secondly, PREIT has looked to towards experiences -- such as LEGO Discovery Centers and Dave & Buster's Arcades -- to fill empty anchor stores. If the economy goes bad, these are the first things consumers will cut. With the economy showing signs of cracking, it's easy to see why PEI stock now has a 9%+ dividend yield.All in all, PREIT isn't bad per se, but certainly does have plenty of risk behind it. Investors may be better suited in less risky REITs with lower yields.Disclosure: At the time of writing, Aaron Levitt did not have a position in any of the stocks mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 U.S. Stocks That Are Coming to Life Again * The 7 Best Video Game Stocks to Power Up Your Portfolio! * 5 Tips to Become a Better Stock Trader Compare Brokers The post 3 Retail REITs That Are Still in Big Trouble appeared first on InvestorPlace.
The retail sector took a blow in the final month of 2018, adding to a list of consumer economic casualties amid year-end market turmoil and a protracted government shutdown.
Headline retail sales dropped 1.2 per cent month-on-month, a sharp turn from November’s 0.1 per cent gain and far worse than the 0.2 per cent increase economists had pencilled in. The “control” category of sales — which strips out items including cars, petrol, building materials and food services — fell by a steeper amount, 1.7 per cent, in the month, the poorest reading since 2001.
Cincinnati-based retail giant Macy's Inc. named a new executive in charge of merchandising its more than 650 stores.
Macy’s, Inc. (NYSE:M) today announced that Patti Ongman has been named chief merchandising officer of the Macy’s brand, effective March 1, 2019. In her new role, Ongman will be responsible for leading Macy’s Merchandising, with oversight of merchandising, private brands and planning for the company’s five "families-of-business" (Ready-to-Wear, Center Core, Beauty, Men’s and Kid’s, and Home). As a 33-year veteran at Macy’s, she’s a trusted leader to our colleagues and a valued partner to our vendors,” said Hal Lawton, Macy’s president.
Metro Atlanta-based jewelry wholesaler ZENZII has extended its reach through a new partnership with Macy's.
ATLANTA, Feb. 12, 2019 /PRNewswire/ -- ZENZII announces that Macy's, Inc. is now their newest retail partner and will be selling a select assortment of their accessories in over 130 full-line stores. ZENZII, known for its fashion jewelry that combines statement styles with high quality materials, has partnered with Macy's to offer a variety of exceptional spring pieces. ZENZII is an exemplary leader in the fashion jewelry industry with its ability to create countless modern and classic styles with higher quality materials and competitive pricing.
The world's largest retailer began bolstering its partnerships with third-party courier firms to reach consumers in 100 U.S. cities last year, after failing to use Uber and Lyft to deliver groceries, and struggling in its attempt to use its own employees to deliver goods. Deliv, which was one of Walmart's earliest partners with pilot programs in Miami and San Jose, served the retailer with a 90-day termination notice, and the two companies stopped working with each other in late January, according to two people familiar with the situation. Walmart confirmed the previously unreported decision, and said it still partners with seven delivery firms, including DoorDash and Postmates, four of which it signed up in January.
Compensation Advisory Partners Associate Ryan Colucci and Founding Partner Melissa Burek By John Jannarone 100x? 1000x? The ratio of CEO compensation to median employee income can be a staggering figure – one that some companies feared would cause uproar among staff and journalists when they were widely reported in public filings over the last year. […]
A racketeering case filed in federal court against Kroger Co., a Macy’s Inc. department store chain and five other retailers accusing them of extortion has been dismissed.
Simon Malls, the mall’s operator, is reportedly looking to tear down and replace the 94,337-square-foot building with a Restoration Hardware and a Bashford luxury retailer.
Global stocks mixed as U.S.-China trade talks resume this week in Beijing and investors eye developments in the final week of the corporate earnings season. China stocks rise on the first day of trading after last week's lunar holidays, with data showing retail earnings rose 8.5% from last year, the slowest pace in a decade that underscored weakness in the consumer economy. Oil prices mixed following last week's Baker Hughes rig count, which showed U.S. drillers added 7 installations last week as production held at a record 11.9 million barrels per day.
Macy's Inc NYSE:MView full report here! Summary * Perception of the company's creditworthiness is negative * ETFs holding this stock have seen outflows over the last one-month * Bearish sentiment is moderate Bearish sentimentShort interest | PositiveShort interest is moderate for M with between 5 and 10% of shares outstanding currently on loan. The last change in the short interest score occurred more than 1 month ago and implies that there has been little change in sentiment among investors who seek to profit from falling equity prices. Money flowETF/Index ownership | NegativeETF activity is negative. Over the last one-month, outflows of investor capital in ETFs holding M totaled $18.25 billion. Additionally, the rate of outflows appears to be accelerating. Economic sentimentPMI by IHS Markit | NeutralAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Consumer Services sector is rising. The rate of growth is weak relative to the trend shown over the past year, however. Credit worthinessCredit default swap | NegativeThe current level displays a negative indicator. M credit default swap spreads are near their highest levels for the past 1 year, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
While no-moat Macy's M and other department store competitors have suffered declining sales, Nordstrom increased revenue from about $10 billion to $16 billion between 2010 and 2018. Nordstrom's full-price and Rack (off-price) stores consistently reported positive same-store sales growth over this period. The company has about 140 full-price stores, nearly all of them in desirable Class A malls (sales per square foot above $500).
Why JCPenney Is Pulling Appliances from Its StoresJCPenney to stop selling appliances JCPenney (JCP) will stop selling major appliances at its stores starting at the end of February. The mid-tier department store chain will also reduce its exposure
Strong free cash flow and roughly $300 million in asset sale proceeds likely enabled Macy's to add a lot of cash to its balance sheet last quarter, despite paying down $750 million of debt.