While some retailers have opted to remain closed on Thanksgiving Day, Macy's, Inc. (M - Free Report) has decided to keep its 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. instead of 6 p.m., and will remain open until 2 a.m. It will again reopen its stores at 6 a.m. 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, Macy’s move is seen as part of the company’s effort to aggressively tap the holiday season, in order to provide cushion to its dwindling top and bottom line.
A look at the company’s performance in fiscal 2015 unveils that net sales declined 0.7%, 2.6%, 5.2% and 5.3% in the first, second, third and fourth quarters, respectively. Maintaining the same chronological order, we note that earnings per share fell 6.7%, 20%, 8.2% and 14.3%, respectively. In fiscal 2016, net sales decreased 7.4% and 3.9% in the first and second quarters, while earnings per share plunged 28.6% and 15.6% during the respective quarters.
Of late, employees have been raising their voice against keeping stores open on Thanksgiving, as they want to enjoy the day with their families. hhgregg, Inc. , Staples, Inc. and Office Depot, Inc. (ODP - Free Report) have decided to keep its stores closed on the day, as they want their associates to enjoy Thanksgiving with family and friends.
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.
Macy’s currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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