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Strategies & Market Trends : Value Investing

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To: Spekulatius who wrote (62009)	5/16/2019 9:20:28 PM
From: E_K_S	Read Replies (1) of 78659

RE: M CEO update: "Our brick & mortar sales trend improved sequentially in the first quarter, supported by the Growth50 stores and Backstage. We had another quarter of double-digit growth in our digital business, and mobile continues to be our fastest-growing channel," said Jeff Gennette, Macy’s, Inc. chairman & chief executive officer." They also have their store w/i the store (ie cosmetics) that has expanded to online ordering w/ pick-up in store. Once in store they buy more. This increased from 3.5% of activity to over 10%. They are looking to expand this on-line business but it's small compared to total sales. Going to a Macy's is now a 'social' event (as in the past but more so now). Therefore, maybe you get larger sales per customer. I am looking at current EPS, dividend and growth in revenues from (1) on-line and (2) longer term real estate projects. Growth is/will be slow so M will never demand a high PE. I do think a 5 PE is too low. Something near 10 is my guess once on-line develops. That would then value the company in the mid to high $30's. I will wait, collect the 7% dividend and re-evaluate after ThanksGiving. M typically move higher into Christmas/New Year time period. EKS

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