Macy’s Q3 Earnings Just Adds More Questions About Its Plan for Growth
Macy's (NYSE: M) shares are up 4.5% since reporting earnings on Nov. 21, but if you zoom out, shares are down a gigantic 47.6% year to date. It has significantly underperformed the S&P 500, which returned 29% and the SPDR S&P Retail ETF, which returned 11%. Its two most recent growth strategies are working well. First, in 2015 with its off-price concept Backstage, then in 2018 with its growth 150 initiative. The success of both projects suggests it's aligning with the preferences of retail shoppers. Here's a look at the progress of each individually and how they'll impact the consumer discretionary stock's future.
Source: Macy's
Backstage is Macy's off-price brand which began in 2015, first with stand-alone locations, and then management changed course and built them inside Macy's stores. It opened 50 Backstage stores year-to-date and now has 215 locations within Macy's stores nationwide and seven freestanding locations.
Source Fool.com
