How Good Has Macy's (M) Stock Actually Been?

Core Viewpoint - Macy's is facing significant challenges in the evolving retail landscape, with declining sales and difficulties in maintaining relevance despite efforts to adapt [2][3][8] Sales Performance - Macy's sales have declined by 2.5% year-over-year in the second quarter of fiscal 2025, although comparable sales increased by 0.8%, marking the best performance in 12 quarters [3] - The Bloomingdale's brand showed strong performance with comparable sales up 3.6% from the previous year [3] Financial Metrics - Gross margin decreased by 0.8 percentage points to 39.7%, while adjusted net income was reported at $113 million, reflecting a margin of just 2.3% [3] - Macy's current market capitalization stands at $6 billion, with a stock price of $21.85 [5] Stock Performance - Over the past year, Macy's stock has increased by 30%, outperforming the S&P 500, which rose by 12% [6] - Over the last five years, Macy's stock has returned 128%, compared to the S&P 500's 99% [6] - However, over the past decade, Macy's stock has declined by 21%, while the S&P 500 has increased by 277%, indicating a long-term struggle [6] Market Position - Macy's remains a significant player with $22 billion in trailing 12-month sales, but this is below its historical highs [8] - The company is burdened by expensive real estate and faces competition from smaller brands in the e-commerce space [2][8] Valuation - Macy's stock is currently trading at 11 times trailing 12-month earnings, which may not represent a compelling investment opportunity given its current outlook [7]