When Donald Trump called for a Macy’s boycott on July 1st, 2015 — tens of thousands of Macy’s customers immediately terminated their credit card relationship.
Commentators and analysts immediately wondered how this would effect Macy’s earnings and stock price.
After five years, Trumps enjoys rock-solid and ardent support from his base. Many supports we talked with will not purchase from Macy’s under any circumstance.
This unwavering support would help explain why Macy’s stock is down 76%.
We reiterate our sell rating for Macy’s with a price target of $12.
Retail is a tough place. Walmart, Target and Dillard’s are holding their own against Amazon. Walmart/Target/Dillard’s make good decisions at executive level. Macy’s is stumbling. The exec team at Macy’s continue to make self inflicted wounds since this very bad decision to remove Trump clothing from all stores. Wait on new leadership before you consider investing in M.