Jim Cramer: Macy's Is 'Disturbing'

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When was the last time you shopped at Macy's (M) - Get Report

Macy's (M) - Get Report got a rare sell from Goldman Sachs analysts on Monday, Dec. 9.

Macy's is down over 50% in the past year.

"We acknowledge significant [year-to-date] underperformance and already weak sentiment following the recent deterioration in fundamentals. However, we see significant additional downside to M’s retail operations, which offset upside from store segmentation and cost savings initiatives," wrote Goldman Sachs analysts.

Macy's market cap has gone from $21 billion in 2015 to $4.7 billion in 2019.

"Wall Street enticed many brick and mortar stores to do the wrong thing with their balance sheets. Macy's bought back more than 100 million shares in the last seven years yet its market cap has gone from $14 billion to $4.6 billion. It's got a debt hangover of $4.7 billion, a lot of which can be attributed to the buyback. Kohl's took share count down from 271 million to 157 million in seven years while the market cap went from $11.3 billion to $7.3 billion. It, too, has a big slug of debt that can be attributed to the buyback. Had these companies spent that money developing online strategies they might have become much more relevant," wrote Cramer in his Real Money column on Monday morning. 

Cramer weighed in on TheStreet's live show Monday morning to say that he "finds Macy's disturbing."

Watch the video above for more on Macy's.

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