Macy's (M) Overcomes Challenging Q4, Remains Dominant Apparel Retailer - Stifel

Stifel reaffirmed its Buy rating and $64 price target on Macy's (NYSE: M) following the retailer's Q4 report and outlook issued earlier Tuesday.

Analyst Richard Jaffe noted that adjusted Q4 EPS of $2.31 exceeded Stifel's estimate of $2.18 and the consensus of $2.17. The fourth quarter one-time charges of $88 million pre-tax were well below management’s initial guidance of $120-$135 million due to lower severance expense than previously anticipated. Despite a challenging environment in 4Q, Macy’s was able to achieve solid results driven by a comp store sales gain of +1.4% (+2.3% comp increase when including departments licensed to third parties) and tight expense management, the analyst commented.

Jaffe commented, We believe Macy’s is well positioned as a dominant apparel retailer and in a better position than most to gain market share. In addition, its focus on improving the merchandise assortment while enhancing the customer experience both in stores and online will likely continue to drive strong results.

For an analyst ratings summary and ratings history on Macy's click here. For more ratings news on Macy's click here.

Macy's closed at $53.06 yesterday, with a 52 week range of $37.74 - $56.65.

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