Stock Groups

10 to be announced in January

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A shopping center indoor is closed due to restrictions by California’s State during the worldwide coronavirus epidemic (COVID-19), in Carlsbad California, U.S.A, July 14, 2020.

Reuters| Reuters

Macy’sIt said that it was rethinking the date it would close all 60 of its remaining stores. a batch of 125 That was on the verge of going dark by 2023.

It said that it would announce 10 closings by January and will give more details in the near future.

Adrian Mitchell, chief financial officer, stated that “the delayed closures of certain stores allow us to maintain an physical presence in market,” which was critical for our top line growth. Digital performance is better in markets with stores.

Macy’s was tested off-mall and smaller-format locationsAs it shuts down its bigger locations at traditional malls, Mitchell stated that these openings brought in sales exceeding company expectations. Mitchell said that the department store sees an “unobstructed path” to off-mall.

As an additional announcement, Jana Partners has taken a stake in the department store chain’s business. Macy’s is being pressured by an activist investor to get its ecommerce operation out of its stores. This will allow Macy’s to achieve a higher valuation than the current value.

Jeff Gennette, CEO of Macy’s said that Thursday’s announcement by the company was made in collaboration with AlixPartners. This is to explore all possible options for the company’s digital operations.

Gennette stated that “We also acknowledge the substantial value the market assigns to pure ecommerce businesses.” We are analyzing the current landscape to determine our long-term strategy for further unlocking Macy’s value.

He stated that more information will be shared by the company about their findings following AlixPartners’ review.

Macy’s shares were up 21.1% at the close of the trading day, hitting an all-time high of $37.95 after three years. beat analysts’ expectations on third-quarter earningsAnd sales, and raised its full year outlook.

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