The Clap👏 Macy’s (NYSE: M) stock jumped almost 6% in early trading yesterday after announcing higher-than-expected earnings, but its jump was short-lived as it closed the day down 4.98%.
Who can jump the highest? Macy’s🚀 Macy’s recorded a 28% year-over-year increase in its net profits despite surgeon inflation, labor shortages, & supply chain disruptions. Investors got excited & the stock jumped.
But then, fell flat on their face😵 Investors then shifted focus to Macy’s other announcement, where it rejected investors’ calls to split its e-commerce business from its traditional retail operations.
Investors POV🔍 Investors seeking the split argue it would result in two businesses that are more highly valued than both of them combined.
Macy’s POV🔎 Macy’s management pointed out that consumers who shop in both its online & retail stores tend to spend three times as much as consumers who shop through only one channel.