These 3 Retailers Are Killing Macy's
Macy's (NYSE: M) stock lost about three-quarters of its value over the past five years as its comparable store sales growth slowed and its margins contracted. The department store chain's prospects briefly brightened last year as its comps growth turned positive again, but that streak abruptly ended last quarter as its total comps fell 3.5%.
For the full year, Macy's expects its total comps to decline 1%-1.5%, its revenue to slide 2%-2.5%, and its adjusted earnings to plunge 34%-39%. Those forecasts all missed expectations and indicated that Macy's would struggle during the holidays.
Macy's mainly blamed its troubles on sluggish mall traffic, weak international tourism, the late arrival of cold weather, and a disruption of its e-commerce website. It also mentioned the "competitive environment" during its conference call, but didn't name any competitors.
Source Fool.com
