What Is Wrong at Macy's?
Macy's (NYSE: M), the largest department store in the United States, has struggled in recent years because of global trade pressure and an overall decline in the retail industry. Macy's stock has dropped 50% in 2019, and current levels near $15 per share are down significantly from the $40 high reached in August 2018. Valuation has dropped from $8 billion in 2018 to $4.8 billion today.
Macy's business has faced serious trouble from online competition. Many store closures are expected in coming years, meaning less revenue going forward. Concerns related to the ongoing U.S.-China trade war cannot be ignored; the company has been working to move its private-label product manufacturing out of China, but consumers are likely to see prices go up if tariffs are placed on all Chinese goods.
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Source Fool.com
