The stock price of Macy’s Inc (M) has risen up by over 2.75% today till the late morning trading session. Since the beginning of this month, the stock price of Macy’s has gone up by over 20% and is still rising. The stock closed at $25.59 on Wednesday.
The Ohio based company is an American holding company. It is the owner of department store chains Macy’s and Bloomingdale’s, which specialize in the sales of clothing, footwear, accessories, bedding, furniture, jewelry, beauty products, and house wares; and Bluemercury, a chain of luxury beauty products stores and spas. As of July 26, 2015, the company operated approximately 885 stores in the United States, Guam, and Puerto Rico; its namesake locations and related operations account for 90 percent of its revenue. According to Deloitte, Macy’s, Inc. is the world’s largest fashion goods retailer and the 36th largest retailer overall, based on the company’s reported 2010 retail sales revenue of $25 billion (equivalent to $27.1 billion in 2016).
A few months after cutting a deal to sell half its flagship department store on State Street, Macy’s now has sold its big store at Northbrook Court. GGP, the owner of the Northbrook shopping mall, paid $25 million in January for the Macy’s store there, according to Cook County property records. Though Macy’s is leasing the property back from GGP, the deal could be an early sign that GGP, formerly known as General Growth Properties, plans to redevelop the 280,000-square-foot anchor store into something else in the future. Amid flagging sales, big department store chains have been closing locations all over the country, a negative trend for mall owners, which have historically relied on the stores to drive traffic to their properties.
The store “will continue to operate as usual,” Macy’s spokeswoman Andrea Schwartz said in an email. She declined to say when Macy’s lease at Northbrook Court expires. “There is no impact on store operations, including associates, merchandise or selling space,” she said in the email. “As part of its real estate strategy, Macy’s Inc. has been reviewing its real estate portfolio across the country to see if there are opportunities to improve the use of our assets.”
That review has included Macy’s flagship on State Street in the Loop. Last fall, the retailer reached an agreement to sell the top floors of the store to Brookfield Asset Management, which plans to convert the space into offices.
Our analysts have given a “HOLD” rating to Macy’s stock. Despite the fall in the past years, the stock has gone up this month and is expected to rise further. The current holders of this stock are advised not to sell it yet.