Macy's Leadership Changes 'Not A Complete Surprise': Analyst

Macy’s Inc's M has announced several changes to its leadership team.

The management transition "does not come as a complete surprise," with Tony Spring beginning his second year as CEO, according to Telsey Advisory Group.

The Macy’s Analyst: Analyst Dana Telsey maintained a Market Perform rating and price target of $15.

The Macy’s Thesis: The company's CFO and COO, Adrian Mitchell, will exit on June 21, making way for Thomas J. Edwards, who "brings experience" from Capri Holdings CPRI, Telsey said in the note.

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Macy’s Chief Stores Officer, Barbie Cameron, will begin reporting directly to Chairman and CEO Tony Spring from June 22, she added.

"Additionally, Maly Bernstein, CEO of Bluemercury, will begin reporting to Bloomingdale’s CEO, Olivier Bron, on May 1," the analyst wrote.

While announcing its fourth-quarter results, Macy’s reaffirmed its prior first-quarter guidance, with net sales expected in the range of $4.4-$4.5 billion, down 7%-9% year-on-year, broadly in-line with consensus, he stated.

"Additionally, as a percent of total sales, the adjusted EBITDA margin (excluding asset sales gains) are still planned in the range of 6.4%-6.6%, below the market’s forecast of 6.9%," she further said.

Price Action: Shares of Macy’s had risen by 1.17% to $13.02 at the time of publication on Wednesday.

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