Brokerages chop Macy's PT after downbeat FY forecast

Dillard's

02/06/2023 13:21

** Macy's shares  M.N  up ~1% at $13.90 premarket, adding to
1.2% rise on Thurs despite the department store chain cutting
FY23 forecast and missing Q1 sales estimate
    ** Stock initially fell on Thurs after Q1 report, but
reversed course later; still, M down ~33% YTD
    ** At least seven brokerages cut their PT, with BofA Global
Research pruning it to Street low of $13 (from $21)
    ** The median PT of the 16 brokerages covering M has dropped
to $18 from $23; their avg rating stays "hold" - Refinitiv data
    ** Tesley Advisory Group says Macy's hastened shift to
spring fashion in Q1, leaving customers with fewer options for
extended cooler weather
    ** JPM says higher markdowns across rivals such as Kohl's
 KSS.N  and Dillard's  DDS.N  could eat into M's FY sales
    ** But, Jefferies says Macy's sales drop could be less than
feared if it taps into brand partnerships, like with Nike
 NKE.N 

 (Reporting by Juveria Tabassum in Bengaluru)
 ((Juveria.Tabassum@thomsonreuters.com;))