Financial Analysis Of Macy 's Inc

Macy’s was founded by Rowland Hussey Macy in 1858 in New York City. Macy's stores target the middle-to-higher-priced market, offering women's, men's, and children's clothing and accessories, housewares, home furnishings, and furniture. After its merger with Federated Department Stores, the company became the largest department store company, operating more than 850 department stores across the US. The company primarily operates in the US. Macy's is headquartered in Cincinnati, Ohio, and employs 166,000 people, including part-time employees.

Macy’s enjoys economies of scale giving them purchasing power with their suppliers and the ability to reduce operating costs by spreading fixed costs over a larger base; due to this process Macy’s buys in bulk which locks in larger discounts they can pass on to the consumer creating a win/win situation. This purchasing power allows them to control a larger section of the market and protects them from smaller retailers purchasing the same product. Macy’s sales equal $27.82B with a gross profit of $11.21B. Most analysts recommended buying Macy’s stock last month with 6 analysts predicting a strong performance. Dillard’s revenue is $6.69B and J.C. Penny Corporation revenue is reported at $12.98B for the same time period. (Macy’s (M), 2014). Macy’s, Inc. is currently trading at $57.11 (Macy’s (M), 2014) with a 52-week high of

Macy's business model, like the other two rivals is focused on achieving sustainable growth. Most of the business strategy is outlined and dominated by the firm's extensive indulgence in Corporate Social Responsibility. Macy's believes in attaining sustainable growth satisfying its customer and providing them value for their money in a socially responsible manner (Child 2002).

Due to the economy downturn period, Macy’s and many other retailers were suffering. Fortunately, Macy’s has chosen the beneficial marketing strategy to fit the objective of business. This paper will analyze the company’s situation from its financial aspect, industry aspect, the competitive part and Macy’s marketing strategies to conclude that Macy’s could have stable profit in the next three to five years.

Unlike Starbucks, Macy’s is not doing very well, as evidenced by the fact they announced last month the impeding closure of 68 stores (Peterson, 2017). The company has been struggling for a few years with the growth of the internet and online businesses such as Amazon making their brick and mortar stores impractical in modern times. While the number of stores may not seem like as much of a problem as it is, as other companies have had to close down more in recent years or go out of business in general, this is a symptom of larger problems in both the company and the industry.

The purpose of this paper is to advise analyze the financial statements of Dillard’s, Inc. in order to recommend whether or not my client should invest $1 million in the large retail company. I will compare the financial statements of Dillard’s, Inc. its competitor, Kohl’s Corporation. Investing in retail can be risky because a retail company’s performance is very heavily influenced by factors that have nothing to do with the actual company such as the overall performance of the economy or the weather during the holiday shopping season. There is, however, potential for profitability within the retail sector. Based on my analysis, I recommend that the client should not invest in Dillard’s, Inc. for the following reasons. First, Dillard’s has experience a decline in net income in the last three years. Second, liquidity ratios indicate that they could face possible liquidity constraints in the future. Third, long-term debt paying ability ratios indicate that the company could have trouble paying off the principal of its current debt obligations. Fourth, the profitability ratios are well below industry averages, suggesting that there are more profitable companies to invest in within the industry. And finally, Investor analysis ratios provide mixed opinion of the future performance of the company. I conclude that retail can be a profitable industry to invest in if an investor has the risk tolerance and risk capacity to withstand the uncertainty, but neither Dillard’s

The companies that were chosen for a company analysis include Macy’s, Kohl’s, and Burlington. Since the retail industry has been lagging behind lately, these companies will help determine the prospective financial investment in the retail industry. As Macy’s as our primary company, we chose Kohl’s and Burlington to be the two comparative companies. These companies are comparable due to the same SIC code of 5311 in the subgroup of department stores. These companies offer similar products and services with little differentiation between the three.

Macy’s is a mid-range chain of department stores owned by American corporation Macy's, Inc. It is one of two divisions owned by the company, with the other being Bloomingdale's. In the last 3 years, Macy’s has made many changes to their brand. By implementing discount outlets and changing coupon policy to closing 40 stores, Macys has been through a lot (Market Line, 2016). In 2013, Macy’s merged with LIDS Sports Group, and became an exclusive launch partner for Apple’s new iAd-supported radio service (Market Line, 2016). Essentially, listeners will be able to stream iTunes radio rather than buying it, but the service is supported by ads prominently Macy’s ads. This was a huge step in advertising for Macy’s which delivered in

The structure of the paper will be as follows: First, the purpose and objectives of the fnancial analysis will be streched out, and the target audience will be identified. Second, an initial review of the company that will be taken into consideration, "ABERCROMBIE & FITCH" will be conducted. Third, horizontal and vertical analyses with the help of the three major financial statements of the Abercrombie&Fitch Annual Report (Income Statement, Balance Sheet, and Statement of Cash Flows) will be conducted. Unusual trends will be identified. Additionally, ratios for the financial statemenst will be classified into four broad groupings, based on the characteristics that particular

The annual report and 10-K filings were obtained from macys.com. The financial statements included in the annual report are as follows: consolidated statements of operations, consolidated balance sheets, consolidated statements of changes in shareholders’ equity, consolidated statement of cash flows, and notes to consolidated financial statements. In the report, Macy’s Inc. recognizes several competitors which are Bed Bath & Beyond, Belk, Bon Ton, Burlington Coat Factory, Dillard’s, Gap, J.C. Penney, Kohl’s, Limited, Lord & Taylor, Neiman Marcus, Nordstrom, Saks, Sears, Target, TJ Maxx and Wal-Mart. The top three

Our objective is to estimate the Free Cash Flow (FCF) value of Macy’s Inc. as of July 24, 2011 (date of valuation). Macy’s Inc. is a C-Corporation organized under the laws of Delaware. It is primarily engaged in the business of premier retail fashion. The standard of value was Free Cash Flow Value, which measures the company’s ability to generate

Macy’s, Inc was founded in 1858 as a dry good store in New York city. It is currently is one of the largest retailers in the world. With fiscal 2016 sales of $25.778 billion and approximately 140,000 employees, the company operates 829 stores that include Macy’s and Bloomingdale’s and Bluemercury in 45 states, the District of Columbia, Guam and Puerto Rico. Macy’s Inc. specializes in selling apparel, accessories, cosmetics, home furnishings and other customer goods. Macy’s, Inc. has corporate offices in Cincinnati, Ohio, and New York, New York.

Macy's is one of the premier retailer franchises within the United States. To begin, Macy's Inc. is one of the nation's largest and well known department store chains. Started over 150 years ago, Macy's has continually generated excellent returns for its shareholders and employees. Currently, in the midst of a global recession, Macy's has generated huge profits with same store sales increasing 5.3% year to date. In 2012 same store sales increased 4.6% in the month of February alone (Macy's Inc., 2012). In fact, throughout the duration of 2012, Macy's is projecting even larger profits for its underlying business operations. Even though Macy's has experienced success with both its assortments and brand, its competitors haven't faired so well. Sears, due in part to part to a lackluster holiday season, has been forced to close nearly 120 locations to generate excess liquidity in an effort to shore up its balance sheet (Isadora, 2011).

Sharon, thank you for writing a thoughtful post regarding the retail giant, Macy’s, giving us an accurate evaluation as you compared past and current performance, based on the information provided by Standard and Poor’s. Likewise, the opinion given by this writer is shared, and when one looks to invest, one should consider the ability for the organization to make a profit, and the ability for an organization to pay its debts, as one evaluates the organizations liquidity, solvency, profitability and market ratios (Manea, 2017). Macy’s has demonstrated declining revenue in last 3 years, and less than stellar ratios when comparing the ability to pay short term obligations, high long-term solvency ratios, decreasing earning per share, and diminishing

Macy’s, America’s leading department store retailer, has a rich history dating back to 1858 when it was started off as a small dry goods store by Rowland Hussey Macy 's. At come that time, no one would have guessed that the store would grow on to become one of the largest department store retailers.