Macy’s Inc (M) said over the weekend that its landmark store at Third Avenue and Pine Street in downtown Seattle would be shut down at the end of February 2020.
Macy’s shares closed higher for a second consecutive trading session in New York on Monday. It has also been the sharpest daily surge since September 25th. The stock went up 1.64% ($0.25) to $15.54, after touching an intraday high at $15.55 and an intraday low at $15.18.
Shares of Macy’s Inc have retreated 47.82% so far in 2019 compared with an 18.74% gain for the benchmark index, S&P 500 (SPX).
In 2018, Macy’s stock went up 18.22%, thus, it outperformed the S&P 500, which registered a 6.24% loss.
“After careful consideration, Macy’s, Inc. has decided to sell the Downtown Seattle Macy’s building,” Blair Rosenberg, Macy’s director of corporate communications, said in a statement, cited by The Seattle Times.
“The decision to close a store is always difficult, and we look forward to continuing to serve our customers at nearby Macy’s Bellevue Square, Alderwood, Southcenter and the Redmond Furniture Gallery, and online at macys.com,” Rosenberg added.
Store employees were informed about the planned closure on Friday morning during a regular staff meeting.
Clearance sales are expected to begin in January next year.
The block-long building at 300 Pine Street was taken over by Macy’s from The Bon Marché in 2003.
Analyst stock price forecast and recommendation
According to CNN Money, the 14 analysts, offering 12-month forecasts regarding Macy’s Inc’s stock price, have a median target of $18.00, with a high estimate of $27.00 and a low estimate of $14.00. The median estimate represents a 15.83% upside compared to the closing price of $15.54 on September 30th.
The same media also reported that at least 9 out of 15 surveyed investment analysts had rated Macy’s Inc’s stock as “Hold”, while 2 – as “Buy”. On the other hand, 3 analysts had recommended selling the stock.