Macy's Offers More Excuses as Its Growth Withers
Macy's (NYSE: M) stock has lost half its market value so far this year as its comparable-store sales declined, its margins contracted, and its turnaround efforts fizzled out. Its stores have struggled to attract shoppers in dying malls, and competition from e-tailers like Amazon, superstores like Target, and off-price retailers like The TJX Companies' T.J. Maxx have exacerbated the pain.
The stock looks cheap at six times forward earnings with a forward dividend yield of 10%, but its recent third-quarter report -- which featured more excuses than solutions -- indicates that discount is still warranted.
Image source: Macy's.
Source Fool.com
