Case Study Of Macy's

“Macy’s operating margin in 3Q15 fell to 4.4% from 6.8% in 3Q14, mainly due to asset impairment charges of $111 million related to the plans to close 35 to 40 stores in early 2016 (Bailey).” This decline was a result from not only lower sales but the company’s investments in digital growth in its Bluemercury expansion, as well as cost of entry into the China market and additional investment in the Backstage stores (Bailey). These factors could have appeared more detrimental if it had not been for the lower marketing expenses, restructuring initiatives, and a reduction in bonus accrual that were intended to counteract weak sales performance (Bailey). Higher digital growth helped to offset the decrease in earnings ("Macy 's Earnings Fall for

In 2012 Macy’s had a gross profit margin and net income margin of 11148, and 1335 respectively. In 2013 Macy’s had a gross profit margin and net income margin of 11206, and 1486 respectively. In 2014 Macy’s had a gross profit margin and net income margin of 11242, and 1526 respectively ("Annual Reports/Fact Book -Macy 's Inc."). Gross profit and net income margin both show steady increases year over year, this data indicates Macy 's is continuing to grow at a sustainable rate. In 2013, Macy’s inventory turnover was 3.15, and decreased to 3.03 in 2014. Number of days sales in inventory in 2013 was 115.84 and 120.28 in 2014 ("Annual Reports/Fact Book -Macy 's Inc."). With the decrease in inventory turnover and conversely an increase in number of days sales in inventory Macy 's is showing a decrease in managing inventory, in other words this excess inventory is decreasing

Not only has Macy’s survived, it has flourished; Macy’s is the seventh larger retailer in America, is taking on domestic and international ventures and is maintaining financial stability through it all. If you look at any company piece by piece instead of as a whole you will find flaws but what give the flaws merit or lack thereof, is the company as a whole, as one entity. Viewing everything separately can help us find flaws and correct them but it does not mean we have found what will bring a company down to its knees. Macy’s is accounting for its current shortcomings, and rebalancing to come out stronger and more successful than ever before. As my final words I’ll leave you with this, Macy may have developed the department store, but his legacy and many successors at Macy’s Inc. mastered