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Macy's (M) to Open on Thanksgiving Day to Tap Holiday Fever

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Holiday season and retail are synonymous, and with the upcoming festive season, the spotlight is back on the sector. Most of the retailers kick start their holiday season from Thanksgiving Day as buying on this holiday has become an emerging trend. Macy's, Inc. (M - Free Report) has decided to keep stores open, a tradition which it has been following since 2013, per media reports.

This time the department store chain will open its doors at 5 p.m. and will remain open until 2 a.m. It will again reopen its stores on Black Friday. To take on online rivals, brick-and-mortar retailers do not want to miss out a single opportunity to attract shoppers who start early and seek attractive deals, and so keep their doors open on Thanksgiving. Additionally, the Zacks Rank #3 (Hold) company’s move is seen as part of its effort to aggressively capitalize on the holiday season, in order to provide cushion to its dwindling top and bottom line. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A look at the company’s performance in fiscal 2016 unveils that net sales declined decreased 7.4%, 3.9%, 4.2% and 4% in the first, second, third and fourth quarters, while earnings per share plunged 28.6%, 15.6%, 69.6% and 3.3% during the respective quarters. During the first and second quarters of fiscal 2017 the scenario was no different, as net sales declined 7.5% and 5.4%, while earnings per share fell 40% and 11.1%, respectively.

Macy’s dismal top and bottom lines performance has remain the primary concern for investors and this has gravely hurt the stock's performance. We note that the stock has plunged roughly 29.9% in the past six months wider than the industry's decline of 15.8%.

The holiday season accounts for a sizeable chunk of yearly revenues and profits, and retailers are well on their toes to capitalize on this festive spirit, flooding the markets with offers and promotions.

Opposition to Remaining Open

The issue of stores remaining open on Thanksgiving has been played up by a movement, largely dependent on social media. This includes pages on Facebook such as Boycott Black Thursday and Boycott Shopping on Thanksgiving Day. The idea is to reclaim Thanksgiving as a day to spend at home eating with the family rather than shopping. Consumers can then be free to shop on Black Friday.

In the previous year companies such as The Home Depot, Inc. (HD - Free Report) , The TJX Companies, Inc. (TJX - Free Report) and Costco Wholesale Corporation (COST - Free Report) remained closed on Thanksgiving.

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