Running Head: MACY’S INC. 1 Analysis of Financial Statements - Project 1. Overview of the company A. Name--------Macy’s Inc. B. Stock Symbol-----M C. Price – (current, and 52 weeks high and low) Current------ $5.20 52 Week High ------$23.40 52 Week Low-------- $4.38 Macy’s current stock price $ 5.20. Macy’s 52 weeks Stock Price Performance shows a fluctuation trend in Macy’s stock price in the last 52 weeks. Macy’s maintained lowest price $ 4.38 into highest price $ 23.40 per share. MACY’S INC. 2 D. Dividend Yield – For the 3 prices listed above Macy’s pays an annual dividend of $ 1.51 per share. Dividend yield on current price Dividend yield on 52 Week High Dividend yield 1.51/5.20=29% 1.51/23.40= 6.45% 52 Week Low 1.51/4.38= 34.47% E. Background – History, origin of name/company, products Macy’s Inc. is among United States premier of the Omni channel retailers in fashion with sales of around $ 24.6 billion in the 2019 fiscal year. The organization consists of 3 brands of retail; Blue mercury, Bloomingdale’s as well as Macy’s. The company has its headquarters in the state of Ohio; specifically, Cincinnati and with not only a footprint in national stores, a momentous business in e-commerce plus a rich experience of mobile. Also, the consumers at Macy’s Inc. could shop how they live through any diverse channels and anytime (Groysberg & Abbott, 2016). Most of Macy’s Inc. clients come to its mobile app for the aspects of fashion, e-commerce site and its physical stores. In addition, Macy’s Inc. is not only proud of its heritage but also its auspicious role it undertakes in the American tradition and culture. Macy’s founded in 1858 by Rowland Hussey Macy. Rowland Hussey Macy opened four retail dry goods stores between 1843 and 1855. One of them was the original Macy's store in downtown Haverhill, Massachusetts; it opened in 1851 to serve the mill industry employees of the area. They all failed, but he learned from his mistakes. Macy moved to New York City in 1858, to establish a MACY’S INC. 3 new store named "R. H. Macy & Co." on Sixth Avenue between 13th and 14th Streets. The location was far north of where other dry goods stores were at the time. On the company's first day of business on October 28, 1858, sales totaled $11.08, equal to $347.23 in 2020. From the beginning, the Macy's logo included a star, which comes from a tattoo that Macy got as a teenager when he worked on a Nantucket whaling ship, the Emily Morgan. Macy’s, the largest retail brand of Macy’s, Inc., has served generations at every stage of their lives. Macy’s became one of the world's largest retailers. History is full of tales of daring entrepreneurs who launched small-scale businesses that grew and evolved over time through their owner’s industriousness and creativity. F. Board of Directors – How many, background, anything interesting A board of directors is a group of people who jointly supervise the activities of an organization, which can be either a for-profit business, nonprofit organization, or a government agency. Such a board's powers, duties, and responsibilities are determined by government regulations (including the jurisdiction's corporations law) and the organization's own constitution and bylaws. These authorities may specify the number of members of the board, how they are to be chosen, and how often they are to meet. In an organization with voting members, the board is accountable to, and might be subordinate to, the organization's full membership, which usually vote for the members of the board. In a stock corporation, non-executive directors are voted for by the shareholders, with the board having ultimate responsibility for the management of the corporation. The board of directors appoints the chief executive officer of the corporation and sets out the overall strategic direction. In corporations with dispersed ownership, the identification and nomination of directors (that MACY’S INC. 4 shareholders vote for or against) are often done by the board itself, leading to a high degree of self-perpetuation. In a non-stock corporation with no general voting membership, the board is the supreme governing body of the institution, and its members are sometimes chosen by the board itself. David Abney Chairman and Chief Executive Officer United Parcel Service, Inc. David Abney is currently chairman and chief executive officer of United Parcel Service, Inc. ("UPS"), a multinational package delivery and supply chain management company, roles he has held since 2016 and 2014, respectively. Previously, he served as chief operating officer since 2007, with responsibility for logistics, sustainability, and engineering across all facets of the UPS transportation network, which serves more than 220 countries and territories and includes a ground fleet of more than 96,000 vehicles and an air fleet of more than 500 aircraft. Prior to serving as chief operating officer, Abney was president of UPS International. Earlier in his career, he served as president of Sonic Air, a same-day delivery service. Abney serves on the board of Catalyst, an organization working to accelerate and advance women, including women MACY’S INC. 5 of color, into senior leadership and board positions, and was elected as the 2019 chairman of the Metro Atlanta Chamber of Commerce. He holds a bachelor's degree in business administration from Delta State University. Francis S. Blake Former Chairman and Chief Executive Officer, The Home Depot Francis S. Blake has extensive leadership experience and expertise as a former chief executive officer and senior executive of large publicly-traded companies with global operations. He has an extensive background in strategy and general management of large organizations and significant knowledge of the retail consumer industry, supply chain, merchandising, customer service, growth initiatives, and evolving market practices. Blake has several years of valuable experience as a public company board member and expertise in finance, risk management, strategy and governance through his service on board committees. Blake served as chairman of The Home Depot, Inc. from January 2007 until his retirement in February 2015, as chief executive officer of The Home Depot, Inc. from January 2007 to MACY’S INC. 6 November 2014, and as vice chairman of The Home Depot, Inc. from October 2006 to January 2007. From 2002 to January 2007, Blake also held the position of executive vice president Business Development and Corporate Operations of the Home Depot, Inc. In this position, Blake was responsible for the company's real estate, store construction, credit services, strategic business development, growth initiatives, and international and home services businesses. Prior to his affiliation with The Home Depot, Blake served in a variety of executive positions at General Electric Company from 1992 to May 2001, including as senior vice president, Corporate Business Development in charge of all worldwide mergers, acquisitions and dispositions and identification of strategic growth opportunities. Blake has also held the title of U.S. Deputy Secretary of Energy from May 2001 to March 2002. Torrence Boone Vice President, Global Client Partnerships, Alphabet Inc. At Google, Boone is responsible for driving the company’s strategies and partnerships across a portfolio of the world’s largest global advertisers, spanning the tech, health, beauty and MACY’S INC. 7 consumer packaged goods industries. Boone leads a team focused on large scale global strategic partnerships that deploy Google products and platforms to achieve breakthrough marketing results. Boone also serves as co-lead of the NYC office and a member of the company’s Global Business Hiring Committee. John A. Bryant Former Chairman, President, and Chief Executive Officer, Kellogg Company John A. Bryant has many years of leadership experience and expertise as a chief executive officer, chief financial officer, and senior executive of a large public company with global operations. He has extensive knowledge and expertise in accounting and financial matters, branded consumer products and consumer dynamics, crisis management, international markets, people management, the retail environment and strategy, and strategic planning. In addition, Bryant has several years of valuable experience as a public company board member. He was former chairman of the board of Kellogg Company from July 2014 to March 2018 and retired as MACY’S INC. 8 president and chief executive officer of Kellogg Company in October 2017, having served in that role since January 2011. Bryant was also a member of the board of Kellogg Company from July 2010 to March 2018. He has held various operating roles, including president Kellogg International, president Kellogg North America, and chief operating officer, Kellogg Company, from December 2006 through January 2011. Bryant served as chief financial officer of Kellogg Company from February 2002 until June 2004 and again from December 2006 through December 2009. He joined Kellogg Company in 1998 and was promoted during the next four years to a number of key financial and executive leadership roles. Bryant has also been a trustee of the W. K. Kellogg Foundation Trust since 2015. Deirdre P. Connelly Former President, North American Pharmaceuticals GlaxoSmithKline Deirdre P. Connelly has many years of leadership experience and expertise as a senior executive of large publicly traded companies with global operations. She has extensive knowledge and MACY’S INC. 9 expertise in strategy, operations, product development, brand marketing and merchandising. In addition, as a former human resources executive, Connelly also has valuable insight in managing a large-scale, diverse workforce. From February 2009 until her retirement in February 2015 she was president of North American Pharmaceuticals of GlaxoSmithKline, a global pharmaceutical company. Before that, she was president of U.S. Operations of Eli Lilly and Company from June 2005 to January 2009. Connelly also served as the senior vice president of Human Resources of Eli Lilly and Company from October 2004 to June 2005. From 2003 to October 2004 she was the executive director, Human Resources of U.S. Operations of Eli Lilly and Company. She has also been Leader of Women's Health Business - U.S. Operations of Eli Lilly and Company from 2001 to 2003. MACY’S INC. 10 Jeff Gennette Chairman & Chief Executive Officer Jeff Gennette was elected chief executive officer of Macy's, Inc. in March 2017 and assumed the role of chairman in February 2018. Gennette previously held the role of president of Macy's, Inc. from 2014 through August 2017. Prior to that, he was the chief merchandising officer of Macy's, Inc., a position to which he was appointed in February 2009. Gennette began his retail career in 1983 as an executive trainee at Macy's West in San Francisco. He held positions of increasing responsibility, including vice president and division merchandise manager for men's collections, and senior vice president and general merchandise manager for men's and children's. In 2004, Gennette was appointed executive vice president and director of stores at Macy's Central in Atlanta. During his career, he also served as a store manager for FAO Schwarz and director of stores for Broadway Stores, Inc. From February 2006 to February 2008, Gennette served as chairman and chief executive officer of Seattle-based Macy's Northwest. Gennette returned to San Francisco from February 2008 to February 2009 as chairman and CEO of Macy's West. MACY’S INC. 11 Gennette is the chairman of the NRF Foundation board of directors and a member of the NRF executive committee. Gennette, a native of San Diego, is a graduate of Stanford University. Leslie D. Hale President and Chief Executive Officer, RLJ Lodging Trust Leslie D. Hale has many years of leadership experience and expertise as a senior executive of large public companies. She has extensive knowledge and experience in a wide range of financial disciplines, including corporate finance, treasury, real estate, and business development. In addition, through her positions with RLJ Lodging Trust, General Electric and Goldman Sachs, Hale also has expertise in investor relations, risk management, long-term strategic planning and mergers, and acquisitions. Hale has served as president and chief executive officer of RLJ Lodging Trust, a publicly traded lodging real estate investment trust, since August 2018. From August 2016 to August 2018 she was executive vice president, chief operating officer and chief financial officer and from MACY’S INC. 12 February 2013 to July 2016 she was the chief financial officer, treasurer, and executive vice president of RLJ Lodging Trust. Before that, Hale was the chief financial officer, treasurer, and senior vice president of RLJ Lodging Trust from May 2011 through January 2013. She has also held the title of chief financial officer and senior vice president of Real Estate and Finance of RLJ Development from September 2007 until the formation of RLJ Lodging Trust in 2011. From 2006 to September 2007 she was the vice president of Real Estate and Finance for RLJ Development. And she was also the director of Real Estate and Finance of RLJ Development from 2005 to 2006. From 2002 to 2005, Hale held several positions within the global financial services divisions of General Electric Corp., including as a Vice President in the business development group of GE Commercial Finance, and as an associate director in the GE Real Estate strategic capital group. Prior to that, she was an investment banker at Goldman, Sachs & Co. William H. Lenehan President and Chief Executive Officer, Four Corners Property Trust, Inc. MACY’S INC. 13 William H. Lenehan has many years of investment and leadership experience in the real estate industry, both in public companies and private assets. Specifically, Lenehan has relevant experience in monetizing real estate held by operating companies. Lenehan has several years of valuable experience as a public company executive and board member and expertise in strategy, finance, and corporate governance through his service on board committees. He has held the title of president and chief executive officer of Four Corners Property Trust, Inc., a real estate investment trust, since August 2015. From June 2012 to 2014 he was special advisor to the board of directors of EVOQ Properties, Inc., an owner of a substantial portfolio of development assets in downtown Los Angeles, California. Lenehan was also interim chief executive officer of MI Developments, Inc. (now known as Granite Real Estate Investment Trust), a real estate operating company with a global net lease portfolio, from June 2011 to December 2011. Before that, he was an investment professional at Farallon Capital Management LLC, a global institutional asset management firm, from August 2001 to February 2011. At Farallon Capital Management, Lenehan was involved with numerous public and private equity investments in the real estate sector. MACY’S INC. 14 Sara Levinson Co-Founder and Director, Katapult Sara Levinson has many years of leadership experience and expertise as a former senior executive of several major consumer-oriented companies in the publishing, entertainment, and sports licensing industries. She has extensive knowledge and expertise in marketing, merchandising and trademark licensing. In addition, she has expertise in social networking, ecommerce, and technology innovation. Levinson has several years of valuable experience as a public company board member and expertise in strategy, governance and executive compensation through her service on board committees. Since April 2013, she has been the co-founder and a director of Katapult (formerly known as Kandu), a digital entertainment company making products for today's creative generation. She was also a non-executive chairman of ClubMom, Inc., an online social networking community for mothers, from October 2002 until February 2008. Levinson has also held the title of chairman and chief executive officer of ClubMom from May 2000 through September 2002. She was president of the Women's Group of publisher Rodale, Inc. from October 2002 until June 2005. Additionally, Ms. Levinson was president of NFL Properties, Inc. from September 1994 MACY’S INC. 15 through April 2000, where she oversaw a $2 billion consumer products and e-commerce division, corporate sponsorship, marketing, special events, club services, and publishing. Joyce M. Roché Former President and Chief Executive Officer, Girls Incorporated Joyce M. Roché has extensive leadership experience and expertise as the former chief executive officer of a national nonprofit organization and former senior executive of several consumer products companies. She has extensive knowledge and experience in general management and in the marketing and merchandising areas, as well as financial acumen developed from her executive officer positions. Roché has several years of valuable experience as a public company board member and expertise in risk, accounting, executive compensation, and governance through her service on board committees. From September 2000 through May 2010 she served as president and chief executive officer of Girls Incorporated, a national non-profit research, education and advocacy organization. She was an independent marketing consultant from 1998 to August 2000, and from 1996 to 1998 she was MACY’S INC. 16 president and chief operating officer of Carson, Inc. Roché also held senior marketing positions with Carson, Inc., Revlon, Inc., and Avon, Inc. Paul C. Varga Former Chairman and Chief Executive Officer, Brown-Forman Corporation Paul C. Varga has many years of leadership experience and expertise as the chief executive officer of a global, publicly traded consumer products company. He has extensive knowledge and experience in corporate finance, strategy, building brand awareness, product development, marketing, distribution, and sales. In addition, Varga has several years of valuable experience as a public company board member. He served as chairman of Brown-Forman Corporation, a spirits and wine company, from August 2007 to January 2019 and chief executive officer from 2005 to January 2019. From 2003 to 2005 he was president and chief executive officer of Brown-Forman Beverages (a division of BrownForman Corporation). He was also global chief marketing officer for Brown-Forman Spirits from 2000 to 2003. MACY’S INC. 17 Marna C. Whittington Former Chief Executive Officer, Allianz Global Investors Capital, and Lead Director of the Board Marna C. Whittington has many years of leadership experience and expertise as a former chief executive officer and senior executive in the investment management industry. She has extensive knowledge and experience in management, and in financial, investment and banking matters. In addition, Dr. Whittington has several years of valuable experience as a public company board member and expertise in finance, risk, accounting, strategy, and governance through her service on board committees. From 2002 until her retirement in January 2012 she was chief executive officer of Allianz Global Investors Capital, a successor firm of Nicholas Applegate Capital Management. Allianz Global Investors Capital is a diversified global investment firm. Dr. Whittington was chief operating officer of Allianz Global Investors, the parent company of Allianz Global Investors Capital, from 2001 to 2011. MACY’S INC. 18 Prior to joining Nicholas Applegate in 2001, Dr. Whittington was managing director and chief operating officer of Morgan Stanley Investment Management. Dr. Whittington started in the investment management industry in 1992, joining Philadelphia-based Miller Anderson & Sherrerd. From 1984 to 1992 she was the executive vice president and CFO of the University of Pennsylvania. Earlier, she had been first, budget director, and later, secretary of finance, for the State of Delaware. Jeff Gennette is the Chief Executive Officer and Chairman of Macy’s Inc. who got elected in 2017 as the CEO and in February 2018 as the chairman. As of 2019, the company has around 130,000 members of staff. The chief financial officer of the company is Paula Price as of July 2018, Matt Baer the Chief Digital Officer as of March 2020 and Elisa Garcia the Chief Legal Secretary and Officer of the company (Toothy, 2019). Other members of the Board are: ❖ The Chief Operations Officer being John Harper ❖ Senior V. President of the Corporate Communications who is Cheryl Heinonen ❖ Human Resources and Chief Transformation Officer; that is, Danielle Kirgan. ❖ Chief Technology Officer – Mr. Naveen Krishna MACY’S INC. 2. 19 Common Size A. Balance Sheet – Vertically and Horizontally Macy's Inc. horizontal analysis 1/30/2020 1/30/2019 Net Receivables $ 685,000.00 $ 409,000.00 Inventory $ 5,188,000.00 $ 1,162,000.00 $ 400,000.00 $ 5,263,000.00 $ 7,445,000.00 $ 11,749,000.00 $ 6,637,000.00 $ 3,908,000.00 $ 478,000.00 $ 726,000.00 $ 11,749,000.00 $ 19,194,000.00 % change Assets Current Assets Cash and cash equivalents Total Current Assets $ 6,810,000.00 Non-current Assets $ 14,362,000.00 property, plant and equipment $ 9,301,000.00 Goodwill $ 3,908,000.00 Intangible Assets $ 1,081,000.00 other long term assets $ 72,000.00 Total non-Current Assets $ 14,362,000.00 Total Assets $ 21,172,000.00 Liabilities and stockholders' equity Liabilities Current liabilities Current debt $ $ 21,172,000.00 19,194,000.00 $ $ 17,495,000.00 12,758,000.00 $ $ 5,750,000.00 5,232,000.00 $ $ 533,000.00 36,000.00 -41% 2% -1% -9% 22% 40% 0% 126% -90% 22% 10% 10% 37% 10% 1381% MACY’S INC. 20 Accounts payable $ 2,659,000.00 Taxes payable $ 81,000.00 $ 590,000.00 $ 839,000.00 Accrued liabilities Deferred revenues Total current liabilities $ 5,750,000.00 Non-current liabilities $ 9,045,000.00 Long term debt $ 3,621,000.00 deferred taxes liabilities $ 1,169,000.00 other long term liabilities $ 1,337,000.00 Total non-current liabilities $ 9,045,000.00 Total Liabilities $ 14,795,000.00 $ 2,638,000.00 $ 168,000.00 $ 614,000.00 $ 880,000.00 $ 5,232,000.00 $ 7,526,000.00 $ 4,683,000.00 $ 1,238,000.00 $ 1,580,000.00 $ 7,526,000.00 $ 12,758,000.00 $ Stockholders’ equity $ 6,377,000.00 6,436,000.00 $ $ Common Stock 3,000.00 3,000.00 $ Retained Earnings $ 7,989,000.00 8,050,000.00 Accumulated other comprehensive $ $ income (995,000.00) (951,000.00) $ Total stockholders’ equity $ 6,377,000.00 6,436,000.00 $ Total liabilities and stockholders’ equity $ 21,172,000.00 19,194,000.00 Macy's Inc. Assets Current Assets Vertical Analysis 1/30/2020 1% -52% -4% -5% 10% 20% -23% -6% -15% 20% 16% -1% 0% -1% 5% -1% 10% MACY’S INC. 21 Cash and cash equivalents Net Receivables Inventory Total Current Assets Non-current Assets property, plant and equipment Goodwill Intangible Assets other long term assets Total non-Current Assets Total Assets $ $ $ $ $ $ $ $ $ $ $ 685,000.00 409,000.00 5,188,000.00 6,810,000.00 14,362,000.00 9,301,000.00 3,908,000.00 1,081,000.00 72,000.00 14,362,000.00 21,172,000.00 3% 2% 25% 32% 68% 44% 18% 5% 0% 68% 100% Liabilities and stockholders' equity Liabilities Current liabilities Current debt Accounts payable Taxes payable Accrued liabilities Deferred revenues Total current liabilities $ $ $ $ $ $ $ $ $ 21,172,000.00 17,495,000.00 5,750,000.00 533,000.00 2,659,000.00 81,000.00 590,000.00 839,000.00 5,750,000.00 100% 83% 27% 3% 13% 0% 3% 4% 27% non-current liabilities $ 9,045,000.00 43% Long term debt deferred taxes liabilities other long term liabilities Total non-current liabilities $ $ $ $ 3,621,000.00 1,169,000.00 1,337,000.00 9,045,000.00 17% 6% 6% 43% Total Liabilities $ 14,795,000.00 70% Stockholders’ equity Common Stock Retained Earnings Accumulated other income Total stockholders’ equity $ 6,377,000.00 $ 3,000.00 $ 7,989,000.00 30% 0% 38% $ (995,000.00) $ 6,377,000.00 -5% 30% $ 21,172,000.00 100% comprehensive Total liabilities and stockholders’ equity B. Income Statement – Vertically & Horizontally MACY’S INC. 22 MACY'S INC. INCOME STATEMENT VERTICAL ANALYSIS TOTAL REVENUE Cost of Revenue GROSS PROFIT 1/30/2020 $25,331,000.00 100.00% $15,171,000.00 59.89% $10,160,000.00 40.11% Operating Expenses: Selling, General and Administrative Total Operating Expenses $8,998,000.00 $8,998,000.00 35.52% 35.52% $1,162,000.00 $204,000.00 ($249,000.00) $728,000.00 $164,000.00 $564,000.00 $564,000.00 $564,000.00 $ 1,913,000.00 4.59% 0.81% -0.98% 2. 87% 0.65% 2.23% 2.23% 2.23% Operating (Income or loss) Interest Expense Total Other Income/Expenses Net Income before tax Income tax expense Income from continuing operations Net Income Net income available to common Shareholders EBITDA 7.55% MACY'S INC. INCOME STATEMENT HORIZONTAL ANALYSIS 1/30/2020 $25,331,000.0 0 $15,171,000.0 0 $10,160,000.0 0 1/30/2019 $25,739,000.0 0 $15,215,000.0 0 $10,524,000.0 0 % Operating Expenses: Selling, General and Administrative Total Operating Expenses $8,998,000.00 $8,998,000.00 $9,039,000.00 $9,039,000.00 -0.45% -0.45% Operating (Income or loss) $1,162,000.00 $1,485,000.00 -21.75% TOTAL REVENUE Cost of Revenue GROSS PROFIT -1.59% -0.29% -3.46% MACY’S INC. 23 Interest Expense $204,000.00 $261,000.00 Total Other Income/Expenses Net ($249,000.00) $171,000.00 Income before tax Income tax expense Income from continuing operations Net Income Net income available to common Shareholders EBITDA $728,000.00 $164,000.00 $564,000.00 $564,000.00 $564,000.00 $1,913,000.00 $1,420,000.00 $322,000.00 $1,098,000.00 $1,108,000.00 $1,108,000.00 $2,643,000.00 3. Ratios – 6 Categories A. Company Current ratio = Current assets / Current liabilities = $6,810,000 / $5,750,000 = 1.184 Acid test ratio = (Current assets – Inventories) / Current liabilities = ($6,810,000- $5,188,000) / $5,750,000 = 0.282 Debt ratio = Total liabilities / Total assets 245.61 % -48.73% -49.07% -48.63% -49.10% -49.10% -27.62% MACY’S INC. 24 = $5,750,000/ $21,172,000 = 0.2716 Asset turnover ratio = Net sales / Total assets = $564,000 / $21,172,000 =0.0266 Gross margin ratio = Gross profit / Net sales = $10,160,000/ $564,000 =18.01 Price-earnings ratio = Share price / Earnings per share = 5.20/ 3.60 =1.44 B. Industry Kohl’s Current ratio = Current assets / Current liabilities MACY’S INC. 25 = $4,649,000 / $2,769,000 = 1.6789 Acid test ratio = (Current assets – Inventories) / Current liabilities = ($4,649,000- $3,537,000) / $2,769,000 = 0.4016 Debt ratio = Total liabilities / Total assets = $ 9,105,000/ $ 14,555,000 = 0.6256 Asset turnover ratio = Net sales / Total assets = $ 691,000 / $14,555,000 =0.047 Gross margin ratio = Gross profit / Net sales = $7,834,000/ $691,000 =11.337 Price-earnings ratio = Share price / Earnings per share = 17.38/ 4.88 =3.561 MACY’S INC. 4. 26 Recommendations/Comments A. Buy/Hold/Sell According to research, different investors have been willing to bet on the company because recently, it has been upgraded to rank as a Strong Buy on Zacks Rank #1. Therefore, on the selling, holding and buying, this change in rating has basically reflected an upward trend in the estimates on earning (Simmons & Kang, 2017). Macroaxis is an entity that offers Macy’s Inc. sell / hold or buy commendation just in a setting of either the chosen asset horizon as well as investor outlook concerning some of the risks that get assumed by the holding of the company’s positions. The advice also given from the buy and hold viewpoint. B. Talk about company’s prospects From research, Growth 50 is an approach based at around $ 200 million investments in the experience of the customers at around 50 of the Company’s main stores. Basing on Growth 50’s success, the plan is expected to roll it out of an extra a hundred stores (Groysberg & Abbott, 2016). As per the Chief Executive Officer, the Growth 50 stores have enormously outperformed the other fleet. In the past five years ending on 1st January 2020, some of the margins have been: ❖ Cash Flow - -8.35 % ❖ Gross Margin - +39.69 % MACY’S INC. 27 ❖ Capital Spending - +0.79 % ❖ Earnings Per Share - - 8.75 % ❖ Net Income – 9.48 % ❖ Revenue –1.29 % In addition, Macy’s tracks the estimates on Earnings per Share for the existing and the subsequent years from some of the sell-side analysts that cover the stock via a measure of consensus; that is, the Zacks Consensus Estimate. C. Talk about competition Some of the top competitors of Macy’s Inc. include: Company Chief Executive officer JcPenny Jill Soltau TJX Ernie Herrman Dillard’s William T. Dillard Kohl’s Michelle Gass Nordstrom Erik Nordstrom Walmart Doug McMillon MACY’S INC. 28 The above companies have together raised at least 4.8 B with Macy’s Inc. ranking the 4th position among its top 10 competitor’s. Out of the first 10, their average is 286,446 (Wong, 2017). MACY’S INC. 29 References Groysberg, B., & Abbott, S. L. (2016). Macy's Reinvents Its Millennial Business. Simmons, A., & Kang, J. H. (2018). The Strengths and Weaknesses of Amazon. com and Macy’s as Fashion Retailers. Tokosh, J. (2019). Is the Macy's in my mall going to close? Uncovering the factors associated with the closures of Macy's, Sears, and JC Penney stores. Growth and Change, 50(1), 403-423. Wong, J. S. C. (2017). Narrative and transmedia branding: storytelling in Macy’s Inc. Believe Christmas campaign. Yahoo is now a part of Verizon Media. (2020). Retrieved 20 May 2020, from https://finance.yahoo.com/quote/M?p=M&.tsrc=fin-srch Yahoo is now a part of Verizon Media. (2020). Retrieved 20 May 2020, from https://finance.yahoo.com/quote/KSS?p=KSS&.tsrc=fin-srch
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