Macy's Real Estate Shake-Up Causing Concern for Investors
Macy's is facing a huge investor scare—and a potential stock windfall—as shareholders wait to see what the retail giant plans to do with its real estate holdings, the Wall Street Journal reports. Even though its $7B real estate holdings have helped Macy's retain value, its stock dropped more than 4% over the past days, raising analyst concern that the risky real estate deals could hurt their investor’s confidence even more—despite the fact investors were the ones pressuring Macy’s to sell their stores in the first place. In a research note, Stern Agee analyst Charles Grom said that Macy's recent moves—including the sale of part of a Brooklyn store—“significantly augments the risk profile of the business.” The cash flow helps the company short-term, but Macy’s could be in serious trouble if shareholder concern continues, Charles says. [WSJ]
