M - Macy's is 'off to a good start' despite quarterly sales decline - analyst says

2024-05-21 10:05:05 ET

Macy’s Inc (NYSE: M) had an “encouraging quarter” even though its sales declined another 2.7% on a year-over-year basis, says Bob Drbul – a Guggenheim Securities analyst.

Drbul shares his view on Macy’s stock

The chain of department stores came ahead of Street estimates this morning which suggests it’s “off to a good start with the new leadership”.

is currently in the process of closing 150 of its underperforming locations – a plan that Bob Drbul called “intelligent” in an interview with CNBC today.

He was all praise for the retailer’s asset monetisation programme and its effort to increase luxury store locations by about 20% on Tuesday.

Macy’s stock is now down nearly 10% versus its year-to-date high. It pays a dividend yield of 3.64% at writing.

Drbul agrees the road is tough for

Bob Drbul is convinced that Macy’s is “taking the right steps” to navigate the competitive, consumer and real estate pressures as well as the macro headwinds of interest rates and inflation.

He agreed that “it’s not an easy road” but was uplifted to see “their top 50 locations perform quite well” in the recently concluded quarter.

All in all, the Guggenheim analyst sees the current strategy as the right one for and expects it to help the retail firm be “more competitive” moving forward.

You can read the full earnings press release of Macy’s on this link. Wall Street currently has a consensus “hold” rating on Macy’s stock.

The post Macy’s is ‘off to a good start’ despite quarterly sales decline – analyst says appeared first on Invezz