#2 - Macy's (NYSE:M)
While it’s understandable and not particularly surprising considering the unprecedented conditions facing the industry, Macy’s (NYSE:M) announced early in May that it was going to delay its earnings report until July 1. The company did plan on sharing preliminary data sometime before June 9.
In its Securities & Exchange Commission (SEC) filing, Macy’s claims the delay is due to disruption in the company’s “routine quarterly close process.” Macy’s shares have dropped more than 68% in 2020 and the retailer says it expects to incur a goodwill impairment charge during the first quarter because of declining market value.
Macy’s has been able to reopen stores. As of this writing, the company had opened 68 locations and was expecting to be fully open in six to eight weeks. In an interview on April 30, CEO Jeff Gennette said Macy’s was well into the financing process to raise debt including pulling down its full $1.5 billion credit revolver.
“We are confident that new financing will be in place before we need it, allowing us to extend our financial flexibility over both the short- and long-term,” Gennette said. But like other retailers a lot of this is out of the company’s hands. If consumer spending doesn’t return, Macy’s will need a real life Miracle on 34th Street to stave off bankruptcy.
About Macy's
Macy's, Inc, an omni-channel retail organization, operates stores, websites, and mobile applications in the United States. The company sells a range of merchandise, such as apparel and accessories for men, women, and kids; cosmetics; home furnishings; and other consumer goods under the Macy's, Bloomingdale's, and bluemercury brands.
Read More - Current Price
- $19.52
- Consensus Rating
- Hold
- Ratings Breakdown
- 2 Buy Ratings, 5 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $17.45 (10.6% Downside)
