Macy's Inc M shares are trading higher by 7.9% to $12.66 Wednesday morning. Retail stocks are trading higher in sympathy with Target Corp, which reported better-than-expected third-quarter financial results.
What Happened With Target?
Target's third-quarter FY23 sales dipped by 4.22% to $25.398 billion, slightly exceeding the expected $25.31 billion. Comparable sales fell by 4.9%, with store sales down 4.6% and digital sales down 6%.
On the positive side, gross margin expanded by 270 basis points to 27.4%, driven by lower expenses across inventory, freight, and fulfillment...Read More
See Also: Asia Closes Higher, Europe Markets Trade In Green As Inflation Eases
Why This Matters To Macy's Investors
If Target's report suggests better-than-expected consumer spending habits or patterns, it might signal positive sentiment regarding the overall economy. This could imply that consumers are willing to spend, potentially benefiting other retailers like Macy's, particularly if the report indicates specific categories or products that are in demand.
Target's report might instill general market confidence in the retail sector. Positive sentiments regarding Target's outlook or strategic initiatives could translate into optimism for other retailers, including Macy's, irrespective of their specific market positions.
According to data from Benzinga Pro, Macy's has a 52-week high of $25.12 and a 52-week low of $10.54.
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