Is Macy's Stock A Buy Ahead Of Reopenings? Here's What Earnings Show
Macy's is scheduled to come out with their first quarter report in a few weeks, but Preliminary results out today. Indicating macy's loss is going to be a little smaller than Wall Street was expecting. They've also raised four and a half billion dollars in debt to help shore up the balance sheet so. What do you think, Jason? It's? It's a little better for macy's. Yes, yeah I mean it. It is better in the sense that they bought themselves some more time. We always talk about, it's tough to use debt to get yourself out of debt in. Some, point down the line is gonNA. They're gonNA. Figure out how to reconcile that, but for now. I mean this does by the. Time which is really what they need most of. In a very close second is shoppers right? But I mean you go back a year? Okay, go back a year from from today we were talking about macy's and the challenges business was facing well before the pandemic ever hit. I mean at that point from two thousand fifteen on top line revenue had fallen eleven percent. Net income had fallen thirty three percent earnings per share were down twenty two percent, and then they burn through a considerable amount of cash long way round seventy percent of their cash balance. They burn through since two thousand fifteen as well so I mean. This was a business facing a lot of challenges a year ago. Fast forward today, and clearly those challenges have only grown. It's hard to imagine I. Mean we've talked this. JC Penney for so long. Does the world really need? JC? Penney mean we can ask the same thing. Does the world really need? macy's I mean I. Don't know if it really needs it. I I do feel like maybe there's. There's a bit bit more of a spot for macy's in our retail landscape. Here and I am hopeful. That management is able to weather the storm but I mean I it. It is going to be a monumental task. Going forward in, you know we still don't know how this This coming fall is really gonNA shake out I mean there are there is a there's enough uncertainty i. think in regard to what the fall season is gonNA. Look like here. As far as the pandemic goes, if we can get through the fall season with with relatively a mild conditions, this holiday season is going to be a pivotal time for macy's one where they can really capitalize, but for now yeah I, mean.