'Tis the season for retail, but some retailers aren't feeling the love from the consumer...or Wall Street for that matter.
So, let's talk about what's going on.
How's Macy's Faring?
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.
So, the question is, is Macy's heading down the same dark hole that Sears fell through?
Let's Talk Kohl's
"Amazon is not the fault of Macy's or Kohl's or Nordstrom (JWN) - Get Nordstrom Inc. Report or any other store, but it is, in the end, the single biggest predator in the Valley. The prices are too low, the convenience, too high, to beat Amazon on a regular basis unless you do something so special that it can draw you to the store, turn the brick and mortar into an asset," wrote Cramer in his Real Money column on Monday morning.
How should investors approach the partnership? Is it a positive sign or Kohl's throwing up a white flag?