Back to top

Analyst Blog

Macy’s Inc. (M - Analyst Report) – one of the leading department store retailers in the U.S. – posted both sluggish comparable-store sales as well as sales for the four-week period ended November 24, 2012.

Comparable-store sales inched down 0.7% year over year for the month of November, as the company witnessed soft sales during the month due to Superstorm Sandy, which more than offset the strong Thanksgiving sales. Total sales decreased 0.6% to $2,450 million compared with $2,464 million in the year-ago period.

Year-to-date, Macy’s sales augmented 3.2% to $20.8 billion compared with $20.1 billion in the comparable prior-year period, whereas comps also witnessed an elevation of 3.1%.

Online sales, which include sales from and, surged 39.2% in November 2012. On a year-to-date basis, online sales shot up 37.1% from the comparable year-ago period. The company remains on track to expand both Macy's and Bloomingdale's brands online.

Despite soft results, Macy’s stood by its earlier guidance and expects same-store sales to increase by 4.2% during the fourth quarter of fiscal 2012. Moreover, the company expects earnings to be in the range of $1.94 to $1.99 per share.

Macy’s has been taking a number of initiatives in order to bolster its sales, profitability and cash flows. These steps include integration of operations, consolidation of divisions as well as developing e-commerce business and online order fulfillment centers.

We remain optimistic about the company’s customer-centric localization initiative called “My Macy’s.” The program aims at improving comparable-store sales and reducing operating expenses, with stores and merchandise assortments focusing on local customer needs and preferences.

Macy’s, which competes with J. C. Penney Company Inc. (JCP - Analyst Report), Dillard’s Inc. (DDS - Analyst Report) and Saks Incorporated , currently operates approximately 840 department stores in 45 states, the District of Columbia, Guam and Puerto Rico.

Currently, we have a long-term Neutral recommendation on the stock. However, Macy’s holds a Zacks #3 Rank that translates into a short-term Hold rating.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%