Macy's: Holiday Sales Better Than Expected, But Questions Remain

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About: Macy's, Inc. (M)
by: Alexander Veytsman
This article is exclusive for subscribers.
Alexander Veytsman
Long/short equity, hedge fund manager
Summary

Comparable sales dropped, but the company still beat estimates.

Decline in tourism and weather are likely reasons for sales sluggishness.

The company will host Investor Day on February 5.

Relative to some competitors, M's brand is struggling; meanwhile, the company struggles to establish a meaningful online presence.

Pending new developments around first half of 2020, we remain a cautious Neutral on M shares.

Introduction

In our previous article, we analyzed the company's quarterly results and outlined our reasons for staying on the sidelines. Our thesis has not changed on Macy's since then; however, we would like to