Macy’s Stock Has Rallied This Year — But Here's Why One Fund Cut 6.7 Million Shares

Core Viewpoint - Cooper Creek Partners Management LLC significantly reduced its stake in Macy's by selling nearly 6.7 million shares in the third quarter, resulting in a decrease in the overall value of the position by approximately $73 million [2][3]. Company Overview - Macy's current share price is $22.36, with a market capitalization of $6 billion, trailing twelve months (TTM) revenue of $22.7 billion, and TTM net income of $494 million [5]. - The company operates as a leading U.S. department store with a diversified brand portfolio, utilizing an omni-channel strategy to enhance sales across various consumer segments [6]. Recent Performance - The sale by Cooper Creek leaves Macy's as 0.4% of the fund's reported assets under management (AUM), down from 2.7% in the previous quarter [4]. - Despite the sale, Macy's shares have increased by 40% over the past year, outperforming the S&P 500's 14% gain during the same period [4]. Financial Highlights - Macy's second-quarter net sales reached $4.8 billion, exceeding guidance, while adjusted earnings per share were $0.41, also above expectations [10]. - Comparable sales growth was reported across all banners, marking the best growth in 12 quarters, with Bluemercury achieving its 18th consecutive quarter of gains [10]. Investment Sentiment - The reduction in exposure by Cooper Creek may indicate a strategic shift towards other investment opportunities rather than a negative outlook on Macy's recovery [9]. - Long-term investors may find Macy's to be a cyclical stock linked to consumer strength, with an improving balance sheet and better inventory management potentially supporting more sustainable performance [11].