March 5, 2019
Macy's: Plan on More Disappointment
This WSJ article was written by Elisabeth Winkler on Macy's disappointing future outlook.
This article starts off with a graph, showing Macy's quarterly sales growth for 2017 leading into 2018. This lead into their introduction about how Macy's might seem like they are doing well but that just not the case or at least not lasting. Macy's is on the brink of a panic! Much like sears was. Could Macy's be dying out as well? They are just struggling and have been. This might be the trend for the future as well. They have tried just about everything to stay relevant and keep consumers shopping, such as pop up shops, mobile check out, and virtual reality headsets. All this to no avail. This has made them resort to shrinking some of their stores.
It has been reported that Macy's revenue has dropped in the previous year. Their sales growth is at .7% which is less than the previous forecast. Macy's now determines their EPS to fall between $3.05 to $3.25, but analysts had told them it would be $3.29! This is what basically caused their panic, because their EPS is NOT what thy were anticipating. This has cause them to find was to boost their profit. which unfortunately means cutting cost and down sizing. As a result, the laid off 100 upper management roles. The stock is already down 18% this year, soon Macy's might find themselves in the same boat as Sears.
I found this article interesting because on the outside Macy's seems to be doing fine but just under the surface they are almost in the red. I think it's important to know certain things like this for your own future and to also take notes from others failures and successes.
Submitted by: Kari Thorn
Article link: https://www.wsj.com/articles/macys-plan-on-more-disappointment-11551196698?mod=searchresults&page=1&pos=2&ns=prod/accounts-wsj
Article by: Elizabeth Winkler Feb 26, 2018 10:58 a.m.
Your article over Macy's was super informative because I actually had no idea Macy's was doing so terribly. This pairs perfectly with our class because Macy's marketing skills need to improve in order to bring customers through their doors. Specially their website, that way it doesn't matter as much if customers physically come in or not.
ReplyDelete