by Sheraz Mian
While it’s hard to make much sense of the market’s day-to-day movements at present, there is no such issue with what is expected to happen to Disney (DIS) and Macy’s (M) shares in today’s session. They both missed the mark in their Q1 earnings releases – Macy’s this morning and Disney after the close on Tuesday.
Even though expectations were fairly low for Macy’s to begin with, as the department store bellwether has been struggling for a while now, it missed on the top-line as well as on same-store sales and guidance for the full year. The retailer blamed continued weakness in the apparel category and ‘double-digit spending reductions by international visitors in major tourist markets where Macy’s and Bloomingdale’s are key destinations…’ Macy’s recent struggles – the stock price is roughly half of its year-earlier level – is a true reflection of the challenging environment for traditional retailers.