Don't Buy Macy's Until These 3 Things Happen
Macy's (NYSE: M) shares may look tempting after losing 61% since the beginning of the year. With the holidays ahead, we might expect a boost to sales -- and eventually to the stock price. But don't be fooled. The department store chain isn't out of the woods yet.
Prior to the coronavirus outbreak, Macy's was already struggling with problems such as declines in mall traffic and online competition. Post the global coronavirus outbreak, Macy's faced new problems, including temporary closure of stores and consumers' focus on stockpiling necessities, rather than shopping for clothing or jewelry. While the health crisis isn't over, stores have reopened and retailers are trying to adapt to today's customer. Eventually, we might bet on Macy's recovery. But don't jump in yet until these three things happen.
Image source: Getty Images.
Source Fool.com