Macy’s still facing long-term competitive pressures, says Argus

Argus keeps a Hold rating on Macy’s, noting that the firm’s recent discussions with its CEO indicated that while he was pleased with the company’s Q2 gross margin and expense control, he also continued to see consumers being “choiceful, thoughtful and careful”. Macy’s should bolster liquidity, monetize less-productive real estate, and improve merchandising and service at core Macy’s stores, but while the firm is optimistic about the prospects for the holiday season, the firm remains at neutral due to “long-term competitive pressures” in the department store sector, the analyst tells investors in a research note.