Macy's(US:M) Yahoo Finance·2025-12-12 02:09Core Viewpoint - Macy's is undergoing significant restructuring, closing 150 underperforming stores as it adapts to changing consumer behaviors and increased competition from online retailers and off-price apparel stores [4][11][20]. Company History - Founded in 1858, Macy's has a long history as a major American retailer, evolving through various ownerships, expansions, and challenges, including bankruptcy and mergers [5][6][9]. Current Challenges - The shift towards online shopping and the decline of mall traffic have pressured Macy's sales and profits, leading to a reduction in store count from 737 in 2015 to 450 in 2024 [9][16]. - Macy's revenue has decreased from $24.9 billion in 2008 (equivalent to $36.3 billion today) to $22.7 billion in fiscal 2024 [9]. Restructuring Efforts - The "A Bold New Chapter" plan aims to close approximately 150 stores by 2026, while focusing on 350 go-forward locations and expanding Bloomingdale's and Bluemercury by up to 45 locations [16][22]. - Comparable sales at stores open for more than a year grew by 2%, indicating potential for recovery despite overall sales decline [14][17]. Financial Performance - Macy's reported a slight year-over-year sales decline of 0.6% in Q3, but positive trends were noted in its remaining stores, particularly Bloomingdale's and Bluemercury, which saw sales growth of 8.6% and 3.8% respectively [13][18]. - The company has raised its earnings per share target for the fiscal year to at least $2, up from $1.70, reflecting improved performance [22]. Market Sentiment - Analysts have responded positively to Macy's restructuring efforts, with several firms raising their stock price targets significantly [22]. - However, some industry experts express skepticism about Macy's long-term growth potential, citing challenges in adapting to new shopping behaviors and economic conditions [23].