Shares of the retailer, Macy’s (NYSE: M) were down in morning trading on Wednesday after it announced that Jeffrey Gennette, its current Chairman, and CEO will retire next February, following a 40-year stint at Macy’s. Tony Spring, Macy’s EVP and Bloomingdale’s Chairman and CEO has been appointed as the President, member of the Board, and CEO-elect. The retailer also said that Adrian Mitchell, the current CFO will be the new COO.
Following the news, while top-rated Gordon Haskett analyst Charles Grom commended the management team of Jeff Gennette and CFO Adrian Mitchell for delivering on many company initiatives, the analyst downgraded the stock to a Hold from a Buy as he sees macro pressures building on the company. Grom assigned a price target of $18 on the stock.
The analyst commented that his data reads through March 25 indicated, “moderating foot traffic trends at Macy’s and across the entire department store complex in recent months after some improvement in the December/January timeframe; and (2) moderating digital visits (37.0% e-commerce penetration as of 4Q22), which until March showed positive growth this year versus 2019.”
Besides Grom, other Wall Street analysts also remain sidelined on Macy’s stock with a Hold consensus rating based on three Buys, six Holds, and two Sells.
