The digital marketplace specifically, I mean, yes, Macy's is starting to steer in that direction. There were questions about whether Macy's would survive and be on the other side of this pandemic. And so they're doing a great job at not just, you know, going where they have strength, going towards e-commerce where everything is trending, but also bringing in new customers.ĪKIKO FUJITA: Yeah, Christina, I'm thinking back to right when the pandemic hit, and we were talking about retailers struggling. So they were able to add about 4 and 1/2 million new customers, younger millennial customers, which isn't usually their target. What I think is amazing is, you know, not too long ago, every article we saw about department stores was that they were dead, and Macy's was sort of leading the charge there.īut the CEO has actually been able to cater to younger consumers who don't typically shop at department stores. And so, I think they're shifting appropriately.
If you see where their sales came in last quarter, that's where the attention is. And they're really seeing value in the e-commerce business. So it's very similar to a plan from Saks earlier this year. They have been pushing for them to spin out their e-commerce unit, looking to get a higher valuation. But it's that they tease this digital marketplace that they're spinning out, ready to launch likely second half of 2022, and as you mentioned, really brought on by activist investor JANA Partners. And they don't necessarily get the pop from investors that we're seeing here at Macy's. Yeah, it's great they blew out earnings expectations, but we've seen a lot of companies do that this quarter. What do you see the potential in this new direction here?ĬHRISTINE SHORT: Yeah, I think, as you said, that's really why we're seeing this big pop in Macy's today. They want to eventually flip the digital business from and. And it kind of ties in with their activist investor, JANA Partners, only recently buying about 1 and 1/2% of the stock. She is a Wall Street Horizon vice president of research.Īnd when you dig through this report, and I didn't listen to the call, but I got some notes off of it, a lot of this buzz, I think, has to do with the new curated digital marketplace. And we want to bring in Christine Short to help break it down. I just did the calculations, up over 20%, and that's after reporting great expectations for the holiday season. Christine Short, Wall Street Horizon VP of Research, joins Yahoo Finance Live to break down Macy's earnings and the outlook for the retailer as it invests in its digital presence and battles depressed foot traffic.
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