On Mar 18, we upgraded our recommendation on
), one of the leading department store retailers in the United
States, to Outperform, following better-than-expected
fourth-quarter fiscal 2012 results. The company attained a Zacks
Rank #1 (Strong Buy) status on Mar 16, after reporting impressive
Why the Upgrade?
Over the recent past, Macy's has been one of the few companies
performing well. The company declared impressive results on Feb
26, 2013, wherein earnings of $2.05 per share surpassed the Zacks
Consensus Estimate of $1.98 by 3.5%. The company has outperformed
the Zacks Consensus Estimate for 11 straight quarters by an
average of 38.5%.
The stronger-than-anticipated results came on the back of My
Macy's localization initiatives, omnichannel integration, robust
online sales and effective cost management. Buoyed by Macy's
healthy results, management now projects fiscal 2013 earnings
between $3.90 and $3.95 per share.
Following the sturdy results, the Zacks Consensus Estimates
for fiscal 2013 and 2014 increased 2.6% and 1.4% to $3.92 and
$4.40, respectively, in the last 30 days.
Macy's has been taking prudent steps to augment sales,
profitability and cash flow. These include integration of
operations, consolidation of divisions and customer-centric
localization initiatives. To help drive traffic, Macy's continues
to focus on price optimization, inventory management and
Other Stocks to Consider
The stocks worth considering in the non-food retail, wholesale
New York & Company Inc.
Hot Topic Inc.
), all of which carry a Zacks Rank #2 (Buy).
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