- Telsey Advisory Group analyst Dana Telsey reiterated a Market Perform rating on the shares of Macy’s Inc M with a price target of $25.00.
- Macy’s reported better than expected fourth quarter EPS of $1.88, coming in well ahead of the consensus estimate and the guidance range of $1.47-$1.67.
- The nice beat for the quarter was driven by sales and SG&A discipline, while gross margin was in-line with expectations, noted the analyst.
- The merchandise margin declined for the quarter, driven by increased promotions and markdowns as M worked through excess inventory and remained competitive during the holiday season.
- Following a strong finish to FY22, M detailed better-than-expected guidance for FY23, the analyst specified. Reflecting gross margin expansion and SG&A deleverage, the FY23 operating margin is planned in the range of 10.3%-10.8% versus 10.8% last year.
- At the end of the fourth quarter, inventory was down 2.6% year over year (and down 18% vs. 4Q19), as the company manages carefully through supply chain disruptions and macro volatility. M expects inventories to be down MSD YoY at the end of 1Q23, remarked the analyst.
- Overall, the analyst believes that management deserves credit for operational discipline in a volatile macro environment.
- While concerns over structural traffic headwinds in the on-mall department store channel remain, the analyst sees M as emerging on solid financial footing with the ability to compete for market share in its categories through elevated marketing and merchandising efforts.
- Price Action: M shares are trading higher by 10.8% at $22.64 on the last check Thursday.
- Photo Via Company
Loading...
Loading...
MMacy's Inc
$11.080.09%
Edge Rankings
Momentum
12.19
Growth
89.04
Quality
Not Available
Value
96.18
Price Trend
Short
Medium
Long
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
|---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
