Retailers are suffering in a very general way, with Sears fighting liquidation efforts and most stores posting disappointing figures. Shares in Macy’s (M) are down roughly 16% over the 24-hour period on the Big Board. Post-holiday sales figures of today disappoint everyone. It began the 24-hour period at over $31, but by the time of writing it’s down to just under $26. Back in August, the company’s share price was almost up to $42 per share.
Macy’s Pitiful Christmas Story
Although the company posted gains across most categories, investors were expecting a lot more from the renewed growth strategy at Macy’s corporate. Sales were up less than 2%. Online retailers saw growth in the double digits. Macy’s CEO Jeff Gennette said in its November/December 2018 sales report:
Looking back at 2018, we met our goal of returning the company to growth. Our revised guidance is above the expectations we set at the start of the fiscal year, and we expect to deliver our fifth consecutive quarter of positive comparable sales, including ‘comping the comp’ of the 2017 holiday season. The North Star Strategy is gaining traction, and the entire organization is engaged and motivated to continue improving our performance in 2019.
Investors reacted to the news by divesting themselves of Macy’s in rapid succession.
Kohl’s Joins the Naughty List
Kohl’s also found itself in trouble this week, having posted similar figures to Macy’s, at 1.2% “shifted comparable sales increase.”
Kohl’s CEO Michelle Gass said the company is “delighted” with these results.