The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Macy's Inc. shares fell the most in four months after Deutsche Bank AG downgraded the department-store chain, citing a sales slump and mounting expenses from shipping, retirement and health care.
Paul Trussell, a Deutsche Bank analyst in New York, cut his rating to sell from buy, according to a report on Monday. He also lowered his earnings estimate for the next year to $5.03 a share, compared with the consensus projection of $5.17.
“Don’t catch a falling star,” Trussell said in the note.
The stock fell as much as 3.4 percent to $67.50 after the report was published, marking the biggest intraday decline since Feb. 24. The shares had been up 6.2 percent this year through the end of last week.
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While Macy's could capitalize on its real estate — mimicking a strategy used by Sears Holdings Corp. and Hudson's Bay Co. — the company is unlikely to go that route, Trussell said. Sales, meanwhile, are getting dragged down by sluggish tourism, more competition and struggles at the Michael Kors brand. The analyst now expects shares of Cincinnati-based Macy's to drop to $63.
By Nick Turner; editor: Kevin Orland.
From analysis of the global fashion and beauty industries to career and personal advice, BoF’s founder and CEO, Imran Amed, will be answering your questions on Sunday, February 18, 2024 during London Fashion Week.
The State of Fashion 2024 breaks down the 10 themes that will define the industry in the year ahead.
Imran Amed reviews the most important fashion stories of the year and shares his predictions on what this means for the industry in 2024.
After three days of inspiring talks, guests closed out BoF’s gathering for big thinkers with a black tie gala followed by an intimate performance from Rita Ora — guest starring Billy Porter.