Rough Competition between Traditional Retailers,Online Sellers Putting Macy’s In a Difficult Situation
Macy’s Inc. is scheduled to announce its financial earnings results earnings for the second quarter of fiscal year 2016 before the market opening bell on Thursday, August 11. In the first quarter, Macy’s reported earnings in-line with expectations despite falling revenues by 7.4% on year-over-year basis. Economists are expecting Macy’s to announce 44 cents in earnings per share on revenue of $5.73 billion for the quarter.
Almost no market analyst expects a much-better-than-expected report as brick and mortar retailing is losing market share to one-click e-commerce sales. Even Wal-Mart Stores Inc – the world’s largest retailer had to build its own plan to compete with Amazon.com Inc. and other digital juggernauts, by acquiring e-commerce startup Jet.com Inc. for about US$3 billion in cash. This acquisition has highlighted the challenges facing Macy’s and traditional retailers.
Sell Stop at 34.40, Take profit at 33.80, Stop loss at 34.80