S&P Equity Research Maintains 'Sell' Rating on Macy's (M)

May 14, 2008 1:26 PM EDT

S&P Equity Research maintains 'Sell' rating on Macy's (NYSE: M).

S&P analyst, J. Asaeda, says, "Apr-Q operating EPS of $0.02 vs. $0.16 misses our $0.05 estimate, reflecting markdowns and expense de-leveraging off a 2.6% same-store sales decline, larger than we expected. Given remerchandising efforts in private brands, we are disappointed that women's ready-to-wear was one of M's weakest selling categories. Without "must have" offerings, we believe it will be tough for the company to arrest its negative same-store sales trend despite easing comparisons. We trim our FY 09 (Jan.) operating EPS forecast by $0.03 to $1.82 and reiterate our 12-month target price of $20."

Macy's, Inc., formerly Federated Department Stores, Inc., is a retail company operating retail stores that sell a range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods. [SM]

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