CHICAGO, Oct. 2, 2012 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Macy's Inc. (NYSE: M), The Finish Line Inc. (Nasdaq: FINL), J. C. Penney Company Inc. (NYSE: JCP), Dillard's Inc. (NYSE: DDS) and Saks Incorporated (NYSE: SKS).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Monday's Analyst Blog:
Macy's Ventures with Finish Line
Amidst an uneven economic recovery and cautious consumer behavior, retailers are leaving no stone unturned to keep themselves on the growth trajectory, and Macy's Inc. (NYSE: M) is just doing exactly the same, to keep up in the race of the "Survival of the Fittest." This is evident from its recently announced venture with the premium athletic shoes, apparel and accessories retailer, The Finish Line Inc. (Nasdaq: FINL).
Finish Line, which will become an exclusive athletic footwear partner of Macy's, will operate through the latter's 450 plus locations as leased departments against a licensing fee, with rollout commencing in Spring 2013 and to be finished by Fall 2014. Additionally, Finish Line would manage Macy's footwear collections and stock across 225 outlets starting in Spring 2013.
The deal seems to be profitable for both the parties. The addition of branded Finish Line products in the kitty will assist Macy's in becoming a favorite destination for exclusive footwear collections, apart from its apparel, cosmetics and home furnishings offerings. This would help it to attract traffic both in stores and online.
On the other hand, Macy's presence will facilitate Finish Line to tap under penetrated markets and enhance its customer base. The deal is expected to augment Finish Line's top line by $250 million to $350 million annually in the long run. Currently, Finish Line operates 638 stores in malls.
The store-within-store concept is not new. J. C. Penney Company Inc. (NYSE: JCP) operates in-store Sephora departments, and has also incorporated stores of MNG by Mango and Call It Spring by The ALDO Group in its store suite.
Macy's departmental stores sell a wide range of merchandise. Its products include men's, women's, and children's apparel and accessories, cosmetics, home furnishings and other consumer goods.
In an attempt to increase sales, profitability and cash flow, the company has been taking steps such as integration of operations, consolidation of divisions, customer-centric localization initiatives, as well as developing e-commerce business and online order fulfillment centers. Moreover, Macy's continues to focus on price optimization, inventory management and merchandise planning to drive traffic.
However, the company's customers remain sensitive to macroeconomic factors including interest rate hikes, increase in fuel and energy costs, credit availability, unemployment levels and high household debt levels, which may negatively impact their discretionary spending, and in turn the company's growth and profitability.
Macy's, which competes with Dillard's Inc. (NYSE: DDS) and Saks Incorporated (NYSE: SKS), currently operates approximately 840 department stores in 45 states, the District of Columbia, Guam and Puerto Rico.
Currently, we have a long-term Neutral recommendation on the stock. However, Macy's holds a Zacks #2 Rank that translates into a short-term Buy rating, and well defines its relentless endeavors to combat an economy that still lacks luster.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE Zacks Investment Research, Inc.