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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