We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Macy's Suspends Dividend & Withdraws Outlook Amid Coronavirus
Read MoreHide Full Article
Macy's, Inc. (M - Free Report) recently declared updates including suspension of its quarterly dividend, assessment of non-essential operating costs and withdrawal of fiscal 2020 outlook in view of uncertainty surrounding the coronavirus pandemic. Earlier, the company had also announced temporary store closures from Mar 17 through Mar 31. However, its e-commerce sites will continue to operate in the interim.
Per the latest release, management has decided to suspend its second-quarter fiscal 2020 dividend, without affecting the earlier announced payment. Shareholders of record as on Mar 13, 2020 will continue to receive first-quarter dividend of 37.75 cents a share on Apr 1. In a bid to curb expenses, Macy's has also been reviewing all its non-essential operating costs, and has lowered capital expenditures for the current fiscal year.
Consequently, management withdrew its previously announced fiscal 2020 guidance and refrained from providing any update on the same. For fiscal 2020, Macy’s had projected net sales of $23.6-$23.9 billion. It expected comparable sales on an owned plus licensed basis to decline 1.5-2.5%. Moreover, the company envisioned fiscal 2020 adjusted earnings per share (excluding asset sale gains) of $2.20-$2.40. Management had expected gross margin and SG&A expense rate to be roughly flat year over year. This Zacks Rank #3 (Hold) company informed that less than 50% of its private brand goods come from China.
Furthermore, the company has chosen to access the $1.5 billion available under its revolving credit facility. This agreement is slated to expire on May 9, 2024. All these measures are expected to provide additional financial flexibility to the company amid tough times in view of coronavirus pandemic.
We note that the novel coronavirus has been rattling most companies and derailing economic activities across the globe. In response to the pandemic, retailers are either shutting down stores or trimming work hours. Incidentally, several retailers have chosen to withdraw their guidance, unable to ascertain the possible impact on costs and revenues. Likewise, retailers such as Abercrombie & Fitch (ANF - Free Report) , Nordstrom (JWN - Free Report) and American Eagle Outfitters (AEO - Free Report) withdrew their initial guidance and closed stores.
Price Performance
In the past three months, shares of Macy’s have plunged 62.6% compared with the industry’s 63.4% decline.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
Image: Bigstock
Macy's Suspends Dividend & Withdraws Outlook Amid Coronavirus
Macy's, Inc. (M - Free Report) recently declared updates including suspension of its quarterly dividend, assessment of non-essential operating costs and withdrawal of fiscal 2020 outlook in view of uncertainty surrounding the coronavirus pandemic. Earlier, the company had also announced temporary store closures from Mar 17 through Mar 31. However, its e-commerce sites will continue to operate in the interim.
Per the latest release, management has decided to suspend its second-quarter fiscal 2020 dividend, without affecting the earlier announced payment. Shareholders of record as on Mar 13, 2020 will continue to receive first-quarter dividend of 37.75 cents a share on Apr 1. In a bid to curb expenses, Macy's has also been reviewing all its non-essential operating costs, and has lowered capital expenditures for the current fiscal year.
Consequently, management withdrew its previously announced fiscal 2020 guidance and refrained from providing any update on the same. For fiscal 2020, Macy’s had projected net sales of $23.6-$23.9 billion. It expected comparable sales on an owned plus licensed basis to decline 1.5-2.5%. Moreover, the company envisioned fiscal 2020 adjusted earnings per share (excluding asset sale gains) of $2.20-$2.40. Management had expected gross margin and SG&A expense rate to be roughly flat year over year. This Zacks Rank #3 (Hold) company informed that less than 50% of its private brand goods come from China.
Furthermore, the company has chosen to access the $1.5 billion available under its revolving credit facility. This agreement is slated to expire on May 9, 2024. All these measures are expected to provide additional financial flexibility to the company amid tough times in view of coronavirus pandemic.
We note that the novel coronavirus has been rattling most companies and derailing economic activities across the globe. In response to the pandemic, retailers are either shutting down stores or trimming work hours. Incidentally, several retailers have chosen to withdraw their guidance, unable to ascertain the possible impact on costs and revenues. Likewise, retailers such as Abercrombie & Fitch (ANF - Free Report) , Nordstrom (JWN - Free Report) and American Eagle Outfitters (AEO - Free Report) withdrew their initial guidance and closed stores.
Price Performance
In the past three months, shares of Macy’s have plunged 62.6% compared with the industry’s 63.4% decline.
Free: Zacks’ Single Best Stock Set to Double
Today you are invited to download our latest Special Report that reveals 5 stocks with the most potential to gain +100% or more in 2020. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
This pioneering tech ticker had soared to all-time highs and then subsided to a price that is irresistible. Now a pending acquisition could super-charge the company’s drive past competitors in the development of true Artificial Intelligence. The earlier you get in to this stock, the greater your potential gain.
See 5 Stocks Set to Double>>