Macy's (M) is taking steps to increase sales, profitability and cash flow, which will put it on the growth trajectory once the economy rebounds. 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 merchandise planning. These help the company to deliver improved performance, and raised its earnings guidance. Macy's hinted that it is also seeking to expand both the Macy's and Bloomingdale's brands.
We have a long-term Outperform recommendation on the stock. Our target price of $27.00, 15.1X 2010 EPS, reflects this view.
No comments:
Post a Comment