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    Does Macy's Store Upgrades and New Distribution Center Shift the Bull Case For Macy's (M)?

    Simply Wall St·12/21/2025 06:14:22
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    • Macy's recently continued its turnaround efforts by closing weaker stores, upgrading key locations such as its Chicago flagship, and opening a new North Carolina distribution center to improve holiday e-commerce delivery cut-offs.
    • By sharpening its focus on upper-income shoppers through Bloomingdale's and Bluemercury while refreshing in-store service and presentation, Macy's appears to be leaning harder into higher-value customers that could reshape its sales mix.
    • We’ll now explore how the new distribution center and store upgrades might influence Macy’s investment narrative and longer-term outlook.

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    Macy's Investment Narrative Recap

    To own Macy’s, you have to believe its store optimization, higher-end focus and omni-channel upgrades can offset soft demand and margin pressures from tariffs and promotions. The latest distribution center and Chicago flagship improvements support the near term omni-channel and holiday execution story, while the biggest ongoing risk remains intense price competition and tariff driven margin compression. Overall, the news is directionally positive but does not fundamentally change the risk that profits could be squeezed if traffic or unit volumes weaken.

    The most relevant update here is the new North Carolina distribution center, which enabled later e-commerce cut-offs this holiday season. That directly ties into Macy’s push to strengthen its omni-channel experience and improve the economics of online and store-fulfilled orders, a key catalyst for lifting customer satisfaction and potentially supporting margins if efficiencies are realized at scale.

    Yet while service and fulfillment are improving, investors should still be aware that...

    Read the full narrative on Macy's (it's free!)

    Macy's narrative projects $18.5 billion revenue and $663.0 million earnings by 2028.

    Uncover how Macy's forecasts yield a $21.70 fair value, a 9% downside to its current price.

    Exploring Other Perspectives

    M 1-Year Stock Price Chart
    M 1-Year Stock Price Chart

    Four Simply Wall St Community members currently see Macy’s fair value between US$21.70 and US$32.00, highlighting a wide spread of individual expectations. As you weigh those views, consider how much confidence you have in Macy’s omni-channel investments and store upgrades to offset ongoing competitive and tariff related pressure on margins and earnings over time.

    Explore 4 other fair value estimates on Macy's - why the stock might be worth as much as 34% more than the current price!

    Build Your Own Macy's Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.