Wednesday, May 12, 2010

Macy's No Stated Merchandising Strategy Management Still Confused ?

Macy’s Inc (M) trumpeted their return to profitability and even increased guidance on revenue growth. But here are a few cautions investors should be aware of. In the press release they did no refer to any retail or merchandising trends or initiatives. They just spoke to basic numbers. This mean management is still reactive and not leading anything forward.

They seem to have increased cash on hand but short term borrowings are also up. No discussion in the earnings release on this issue. We can all borrow cash and put it into a bank account. What’s the point? Why was this done?

Disclosure: No position in this stock