May 10, 2021

Macy's chain suffers its worst session since it went public 27 years ago

Macy's chain suffers its worst session since it went public 27 years ago


NEW YORKUpdated:

The main retail chains in the United States suffered a bad day on Wall Street after reporting a generally poor holiday sales season that, in the case of the popular Macy's, was punished by the markets with its worst session since it went public 27 years ago.

The shares of Macy's lost 17.69% of its value, although they came down more in the first hour, when it reported a "strong" billing on Black Friday that "weakened in mid-December and did not follow the pattern expected until Christmas week", in the words of its CEO, Jeff Gannette.

Macy's had a growth in Christmas sales of its stores of 0.7%, while the previous year had been 1%, and also revised down its profit forecasts for the fiscal year, which discouraged the markets and Contacted other retailers.

Kohl's, another of the best-known chains in the country, lost 6.3% in response to a further slowdown in Christmas sales: it was 1.2%, well below the 6.9% experienced in the months of November and December of the previous year. After the closing of the session, this retailer reported that this year will close four stores with "low performance", a customer service center that will offer a retirement program to employees who have been with the company for a long time, although it also plans to open four small establishments in the country.

Another retailer, J.C. Penney, which has suffered economic vicissitudes in recent months, slipped in the market by 3.7% after reporting a decrease of 3.5% in its Christmas sales and signal that it will close three of its stores this spring.

Target, on the other hand, had a satisfactory Christmas turnover for investors (5.7%) and reaffirmed its earnings forecasts, but suffered a contagion effect and ended up yielding 3.4% in the New York market. Today, he also announced the retirement of its chief financial officer, Cathy Smith.

Other related companies in the sector, such as the Barnes & Noble bookstore (-12.6%), added to the sharp decline in stock prices, which revised its forecasts downwards; the matrix of Victoria's Secret, L Brands, which fell by 7.1%, or the clothing chain The Buckle (-7.1%), these last two with lower sales.

In addition to the generalization of online purchases and the cyclical nature of the sector, analysts point out that retailers face major challenges this year, from tariff barriers to US trade. even the fears of a possible recession.

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