Macy’s Shakes Up Leadership as Stock Nears Yearly Low
The company’s stock has faced a difficult year, closing at $5.58 on Friday—just above its 52-week low of $5.42. Since January, shares have lost 42.32% of their value, leaving Macy's with a market capitalisation of $870 million. The price-to-earnings ratio now sits at around 7.6, signalling weak market confidence in mid-term performance.
Technical indicators reflect the downturn, with the stock’s relative strength index (RSI) at 27.6, placing it in oversold territory. However, moving averages continue to act as strong resistance, limiting any potential rebound. Analysts remain split on the outlook: Barclays has kept a 'buy' rating, while JPMorgan recently cut its price target to $7.50.
In response to financial pressures, Macy's has reduced its treasury stock from 5.03% to 4.00%, now holding 6,533,838 shares directly. The company stated that the freed-up capital would support shareholder value initiatives, compensation programmes, and possible strategic acquisitions. Yet, some investors have criticised the role of private equity firm Permira, questioning its influence on governance and long-term strategy.
The latest leadership reshuffle follows a downgraded forecast for 2026, with revenue growth now expected between 2% and 6%—down from earlier projections. Adjusted EBITDA margins are anticipated to reach 44%. The sales team restructuring, including Faldi’s return, aims to boost efficiency and steady expectations for the next fiscal year.
Macy's stock struggles persist, with technical and fundamental challenges weighing on performance. The company’s revised sales strategy and capital adjustments suggest an attempt to regain stability. How these changes will address investor concerns—particularly around governance and growth—remains to be seen in the coming months.
