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Here's How Much Investing $100 In Macy's Stock Back In 2010 Would Be Worth Today

Here's How Much Investing $100 In Macy's Stock Back In 2010 Would Be Worth Today

Investors who owned stocks in the 2010s generally experienced some big gains. In fact, the SPDR S&P 500 (NYSE: SPY) total return for the decade was 250.5%. But there’s no question some big-name stocks did much better than others along the way.

Macy’s Difficult Decade

One of the market laggards of the past decade was retail giant Macy's Inc (NYSE: M).

The 2010s were a transformative decade for the retail sector. Macy’s and other department stores were forced to invest heavily in an aggressive transition to online sales to keep pace with e-commerce leader, Inc. (NASDAQ: AMZN).

Unfortunately for Macy’s investors, the company finished the 2010s taking the same approach as it started the decade--trying to shrink its way to success. In 2009, Macy’s announced it would be laying off 7,000 employees as part of a cost-cutting and restructuring initiative. From 2010 to 2015, Macy’s closed 52 stores and opened just 12. In August 2016, Macy’s announced it would be closing 100 stores as their leases expired. In February of 2020, Macy’s said it will be closing 125 stores and cutting about 2,000 jobs over the next three years.

Macy's shares started the 2010s trading at around $17. The first half of the 2010’s was a huge success for Macy’s investors. The stock Marched steadily higher with few interruptions, eventually peaking at $73.61 in mid-2015. Unfortunately, that level would mark the highest point of the decade for Macy’s.

The stock began to plummet as rising costs and slowing sales growth compressed margins and ate into profits. Macy's traded back down to as low as $17.41 in late 2017 is rallied back to as high as $41.99 in mid-2018.

2020 And Beyond

Once again, the rally ran out a steam, and Macy’s tumbled to as low as $14.11 in late 2019, it’s lowest point of the decade.

Though the stock has since bounced back above $16, Macy's investors struggled to turn a profit in the 2010s. In fact, $100 worth of Macy's stock in 2010 would be worth about $122 today, assuming reinvested dividends.

Looking ahead, analysts expect Macy's to continue to drift higher in 2020. The average price target among the 14 analysts covering the stock is $17.25, suggesting 5.6% upside from current levels.

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Photo credit: Caldorwards4, via Wikimedia


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