Macy's, Inc.M · NYSE

Why the market may be pricing it low

• The company faces intense competition from specialty, discount and online retailers, and any failure to differentiate directly hits results.

  we have numerous and varied competitors at the national and local levels and digital competitors at the global levelRisk factors

• Management itself flags that inflation, tariffs and macro uncertainty could impede execution of its turnaround strategy and hit discretionary spending.

  heightened inflation, tariffs, economic uncertainty, geopolitical disruption and other macroeconomic conditions that may impact discretionary spendingRisk factors

What could close the gap

• The 125 reimagined stores are outperforming the rest of the fleet; if this spreads chain-wide it could change the closure-driven narrative.

  The Reimagine 125 locations outperformed the rest of the Macy's fleet in 2025MD&A

• Bloomingdale's posted its strongest comparable sales growth in 14 quarters, a luxury acceleration that could offset the shrinking-company narrative.

  Bloomingdale's achieved its highest owned-plus-licensed-plus-marketplace comparable sales growth in 14 quartersMD&A

• An 8-K on officer/director matters and shareholder voting (Items 5.02, 5.07) filed in May 2026 could signal leadership changes that shift strategy.

  2026-05-18 Item 5.02,5.078-K filings

How a buyer could still lose (value trap)

• The Piotroski F-score is a high 8/9, but the asset-turnover-improvement criterion is not met, suggesting store closures may be flattering the metric via a shrinking asset base rather than real efficiency gains.

  Based on the figures below

• Enterprise value exceeds market cap by over $1.1bn because debt of $2,433mn dwarfs cash of $1,294mn, so heavy leverage could erode earnings quality as the business keeps shrinking.

  Based on the figures below

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✓ROA up on last year
• ✓Cash flow exceeds net profit
• ✓Leverage down on last year
• ✓Current ratio up on last year
• ✓No new shares issued
• –Gross margin up on last yearno data
• ✗Asset turnover up on last year

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

$22.8bn

Operating profit

$1.1bn

Net profit

$750m

Operating cash flow

$1.8bn

Cash

$1.3bn

Debt

$2.4bn

Equity

$4.9bn

Latest twelve months to 2026-08-01; F-score for the fiscal year to 2026-01-31