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Macy's CEO: Company Can 'Win As We Have In Prior Setbacks'

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Macy's CEO: Company Can 'Win As We Have In Prior Setbacks'

Macy's Inc (NYSE: M)'s stock plunged around 15 percent on Thursday and is within striking distance of its 52-week low of $29.94.

Investors and traders heavily sold the stock after the company announced disappointing holiday sales numbers and news that it will close another 100 stores.

Disappointing Holiday Season Surprise

In an interview with TheStreet's retail expert Brian Sozzi, Macy's CEO Terry Lundgren suggested that the disappointing holiday season may have come as a surprise for the entire retail sector.

The executive said that while colder weather in many parts of the United States helped boost sales within the cold weather category, it wasn't enough to offset the general decline in both store traffic and in-store purchases.

E-Commerce Vs. Brick-And-Mortar

Moreover, Lundgren said that online sales are "booming," but in similar fashion, rising online sales aren't sufficient to offset the in-store declines.

Lundgren continued that American consumers are indeed spending their money, as evidenced by last year's record automobile sales and the strength in the home goods category. However, retail and department stores are left fighting each other for the remaining piece of the consumer-spending pie.

Is This The End Of The Story?

"We have work to do," Lundgren said. "Obviously, we haven't solved the challenges out there that the industry faces. But, I am positive that this company will come through and win as we have in prior setbacks."

Finally, Lundgren was asked if Macy's will announce further store closures, as Wednesday's announcement follows a similar announcement from August 2016. Investors looking for a clear and concise answer are likely to be disappointed, as the executive acknowledged there is no certainty at this time that Wednesday's announcement marks the final round in store closures.

Posted-In: Brian SozziNews REIT Topics Movers Media General Real Estate Best of Benzinga

 

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