(M) Macy’s Goes Global

Macy’s Inc. (M), one of the leading department store retailers in the United States goes global with its e-commerce site, macys.com. The company recently announced the launch of international shipping across 91 countries in different continents around the globe.

Macy’s is taking quite a number of initiatives including integration of operations, consolidation of divisions, customer-centric localization initiatives, as well as developing e-commerce business and online order fulfillment centers to increase sales, profitability and cash flows. Moreover, the company continues to focus on price optimization, inventory management and merchandise planning to drive traffic.

The move will better position the company to offer its international customers a wide range of collections in apparel, jewelry and home products. Macy’s teamed up with FiftyOne, the leading provider of international e-commerce services to the U.S.retailers, for the move.

Further, the move is highly accretive to the company’s online sales as it will enable Macy’s to generate additional sales and broaden the company’s existing customer base throughout the world. Moreover, it will also enhance the visibility and reputation of Macy’s as a global firm offering great fashion and value.

During the first quarter of 2011, online sales, which include macys.com and bloomingdales.com, sustained their growth momentum, and were up 38.3%. Macy’s hinted that it seeks to expand both Macy’s and Bloomingdale’s brands.

A week before,Macy’s entered into a new four-year bank credit agreement with a consortium of world’s leading investment bankers. The new $1.5 billion agreement is scheduled to mature on June 20, 2015 and overrides the previous $2 billion agreement, which was set to mature on August 30, 2012.

Under the new agreement, the company will save around $8 million in interest expense and forecasts interest expenses of $442 million in the current fiscal. Earlier, Macy’s forecasted an interest expense of $450 million for the current year.

Macy’s, which competes with J. C. Penney Company Inc. (JCP), currently operates approximately 850 department stores in 45 states, the District of Columbia, Guamand Puerto Rico.

Currently, we have a long-term ‘Neutral’ rating on the stock. However, Macy’s holds a Zacks #1 Rank, which translates into a short-term ‘Strong Buy’ rating.

PENNEY (JC) INC (JCP): Free Stock Analysis Report

MACYS INC (M): Free Stock Analysis Report

Zacks Investment Research

About vitalstocks

This is a sample profile field. Vitalstocks is the operating company for Stockbloghub. This will place the picture of the author or company in the profile. Here is another extra line of information.

Comments

Powered by Facebook Comments


Similar Posts: | | | | Department Stores | Services

RSS feeds: J. C. Penney Company Inc | JCP | M | Macy's Inc. | Department Stores | Services |

Other Posts by | RSS Feed for this author