Macy’s: An Update After A Disastrous Half Year (NYSE:M)

Macy’s (M) has been struggling for years, which did cause a real overhang on the shares. This was of course driven by a combination of modest declines in sales and real margin pressure, yet I always believed that pulling the real state card and the subsidy from cheap real estate will result in a situation in which value for shareholders could be delivered.

After two dismal quarters following Covid-19, the situation has become much more challenging and far less compelling, although there are some silver linings as well which make the story still very interesting to watch.

What Happened?

As mentioned, Macy’s has been struggling over the past decade as sales have risen from $25 billion around 2009 to a peak of $28 billion in 2013/2014 before falling back to $25 billion again in 2019; 2020 will be a strange year for obvious reasons. Years of cumulative inflation chip away

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