Macy’s (M) Drops on Holiday Pressure

Core Viewpoint - Macy's Inc. is experiencing significant challenges ahead of the holiday season, with a notable decline in stock performance and a weak outlook for consumer spending [1][2]. Group 1: Financial Performance - In the third quarter, Macy's net income fell by 60.7% to $11 million from $28 million year-over-year [4]. - Net sales remained flat at $4.7 billion, while total revenues also held steady at $4.9 billion, exceeding previous guidance of $4.5 billion to $4.6 billion [4][5]. Group 2: Consumer Behavior and Market Strategy - The company anticipates selective spending among consumers during the holiday period due to ongoing cost pressures from higher tariffs [2]. - Macy's plans to implement a $9.99 shipping fee for returns, unless customers are loyalty members, in an effort to minimize returns [3]. Group 3: Store Closures and Future Plans - Macy's has announced plans to close 150 underperforming stores by the end of 2026, with 50 closures expected this year [5].