Why Macy's Stock Is Falling

Macy’s Inc M shares are trading lower by 3.04% to $14.68 during Wednesday’s session, reflecting broader retail sector jitters after Target Corporation released disappointing third-quarter earnings.

What To Know: Target missed Wall Street estimates for both revenue and earnings per share, citing cost pressures and challenges related to inventory and supply chain management. The retail giant also lowered its full-year profit outlook, signaling caution heading into the crucial holiday season.

The ripple effects of Target's report are likely weighing on Macy's as investors brace for potential parallels in performance. Target's challenges, such as increased digital fulfillment costs and inventory pressures, may mirror broader trends impacting department stores, which have also been grappling with shifting consumer behavior and rising costs.

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Additionally, Target's lowered guidance suggests potential headwinds for discretionary spending, a vital revenue driver for Macy's.

Target's results highlighted that while beauty and essentials categories grew, comparable sales across other segments were modest, raising concerns about retail demand. Macy's, heavily reliant on apparel and home goods, is particularly sensitive to shifts in consumer spending priorities.

The cautious sentiment could pressure Macy's shares as investors reassess retail earnings prospects in a challenging economic environment.

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How To Buy M Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Macy’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, Macy’s has a 52-week high of $22.10 and a 52-week low of $14.06.