Macy's Slides on Deutsche Downgrade

Macy's is downgraded to hold by Deutsche Bank, and shares in the company slide in pre-market trading.
By Jeanine Poggi ,

NEW YORK (

TheStreet

) --

Macy's

(M) - Get Report

is downgraded to hold from buy, as one investment fund says it has lost faith in the department store's ability to drive sales.

Deutsche Bank originally upgraded Macy's on Jan. 22, believing "up-for-grabs sales would drive market share gains and significant margin recovery would benefit EPS," the firm wrote in a note. "We have now lost confidence in Macy's sales trajectory, as post-recession consumers focus on value and convenience, and Macy's integration risk and turnaround execution remains as great, if not greater than ever."

The "My Macy's" initiative is also expected, by Deutsche Bank, to underwhelm investors.

Last week

reports said Macy's will cut 1,500 jobs at store level

by March 6.

Just prior to Monday's opening bell, shares in Macy's had dropped by 33 cents, or more than 2%, to a pre-market price of $15.60.

-- Reported by Jeanine Poggi in New York.

RELATED STORIES:

>>Macy's Is Latest Retailer to Cut Jobs

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