Macy's Inc (NYSE:M) is battling weak sales and shifting consumer habits while trying to revive performance through major store closures and cost controls. The stock is trading around $11.60, far off its 52-week high, with shares down roughly 40% over the last year. It’s still paying a 6% dividend, but the business is under pressure. With an earnings report just days away, the market is watching for signs of a turnaround—or deeper trouble.
#Why This Is Important for Retail Investors
A 6% dividend is well above average, but investors need to ask if it’s sustainable.
At a P/E of 5.8, the stock screens as cheap. But cheap doesn’t always mean good.
Results on May 28 will test management’s strategy and the market’s patience.
Plans to shut 150 stores show Macy’s is serious about cutting costs and refocusing, but it also reflects falling foot traffic.
The stock could pop if earnings exceed low expectations, but it could also drop fast on more bad news.
#About the Company
Macy’s is a department store chain that owns brands like Bloomingdale’s and Bluemercury. It operates more than 500 locations but is in the process of downsizing. It targets middle-income consumers with apparel, beauty, home goods, and seasonal merchandise. Macy’s is trying to balance traditional in-store retail with e-commerce, but competition and lower demand have forced a shift in strategy.
#Competitive Landscape
Macy’s competes with both legacy and digital-first retailers. Nordstrom, Inc (NYSE:JWN) and Kohl's Corporation (NYSE:KSS) target similar demographics. Online players like Amazon.com, Inc (NASDAQ:AMZN), Shein, and Temu continue to undercut on price and convenience. Big-box retailers like Walmart Inc (NYSE:WMT) and Target Corporation (NYSE:TGT) are taking market share in apparel and home goods. Macy’s mid-tier positioning is under pressure from all sides.
#Near-Term Catalysts and Risks
The most immediate catalyst is the upcoming earnings report. If Macy’s beats low expectations and shows traction with cost-cutting and store rationalization, the stock could rebound. But there’s execution risk. If traffic trends stay weak or the company cuts guidance, shares could see more downside. Watch dividend guidance too—any hint of a cut could trigger selling.
#Trading Macy's Stock
This is a classic deep value versus falling knife setup. If you’re income-focused and can stomach risk, the 6% yield is appealing. But don’t buy the dividend blindly. Make sure it’s covered by cash flow. For shorter-term traders, this could be a bounce play into earnings, but keep stops tight. Long-term investors need to see real progress on strategy before sizing up.