Macy's (M) PT Lowered to $24 at Jefferies Following Analyst Day

Jefferies lowered its price target on Macy's (NYSE: M) to $24.00 (from $27.00) while maintaining a Hold rating following analyst day. Management focused on LT initiatives to drive the biz including marketing, merchandising, omni capabilities, and real estate monetization.

Management guided GM's down 60-80 bps for F'18 (vs. prior guidance of "down") and down 100 bps for 2Q. Jefferies is disappointed to learn of greater compression, but not entirely surprised given industry headwinds. Management expects to offset this pressure with SG&A savings, but this remains to be seen.

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