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Bull
- Macy’s owns significant real estate that can be sold to provide liquidity, pay down debt, and finance new investments. The firm intends to raise about $600 million-$750 million from real estate sales over the next three years.
- With more than $7 billion in annual digital sales, Macy’s is one of the largest e-commerce companies in the US. It is building a media network to monetize its online traffic.Bear
- Macy’s has been closing stores and implementing turnaround plans for years but none of them have really improved the underlying health of the business.
- Macy’s shares could fall if no takeover materializes. As evidence, Kohl’s shares have not recovered from a failed takeover process in 2022.
- Macy’s sales and profit margins have trended downwards for most of the past decade. We do not expect the firm’s sales or profitability to approach historical highs
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Disclaimer
The user julio has a position in NYSE:M. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.
