Macy's: Torn Silver Lining

Macy’s (M) is leaning on its merchandise payables as it navigates debt repayment. Sure results are improved including huge on line increases. But merchandise payables is up some $400 million, inventories seem flat for the past six months, cash is down for the past six months and we are looking at an inventory build as we enter the back to school and Christmas selling seasons.

Is this the rip in the silver lining?

Disclosure: No position in any stocks mentioned in this post.