In the Midst of a Pandemic, Does Macy's Have a Path Forward?
Macy's (NYSE: M) stock fell by more than 20% on March 23 after the Cincinnati-based retailer famous for its Thanksgiving Day parade saw investors bail out as the company suspended its dividend.
That day, shares closed at just $4.81 per share, though they have since recovered to $6.61 as of this writing. This is the latest in a series of ups and downs for a stock that sold for over $70 per share in 2015. With the stock having lost more than 90% of its value, investors will have to determine whether the company can remake itself or whether they should pass on this venerable retailer.
Macy's also withdrew its guidance when management cut the dividend. However, the economic slowdown caused by the coronavirus has led numerous companies both inside and outside of retail to take the same step. Understandably, few companies want to try to predict revenue and earnings with such a high level of uncertainty. While e-commerce remains in operation, the fact that Macy's and most other peers have to close their stores makes the near future that much more difficult to forecast.
Source Fool.com
