M - Macy's is on watch as UBS says it will miss estimates now and later

2023-07-12 10:22:47 ET

Macy’s ( NYSE: M ) is on watch on Wednesday morning after UBS reiterated a Sell rating on the company saying it will miss Street earnings expectations this year and over the long-term.

“In the near-term, we believe the U.S. consumer spending environment will deteriorate and this will negatively impact M more than the market expects,” analysts led by Jay Sole wrote in a note. In addition, consumers will migrate to “online pureplay channels, retailers with better value-for-money propositions such as TJX, and brands' own stores and websites.”

UBS cited a survey showing that for the sixth year in a row Macy’s ( M ) shoppers’ purchase intentions are lower than the survey average. M also continues to lose customers because of “high prices.”

“This is a reason off-price retailers are taking share since consumers don’t cite high prices nearly as often as a reason for not shopping that channel,” the firm said.

Shares of Macy’s ( M ) are down 18% year-to-date. The stock has three Strong Buy ratings, three Buy ratings, eight Holds, one Sell and one Strong Sell from Wall Street analysts.

Shares fluctuated at the start of the trading day.

More on Macy’s:

• Macy's: Not So Dire
• Macy's: Now Fairly Valued
• Macy's, Inc. ( M ) - FORM 10-Q | Quarterly Report
• Nike runs back into Macy's stores as it rekindles wholesaler relationships

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