Skip to main content

Market Overview

Analyst: Macy's Loss Is Burlington's Gains

Share:

Macy's Inc (NYSE: M)'s plans to close dozens of stores has been well communicated to investors, but what's less clear is who will scoop up Macy's lost business.

According to CNBC, BMO Capital Markets analyst John Morris believes that the little known off-price retailer Burlington Stores Inc (NYSE: BURL) could see its earnings per share rise by $0.15 since it's geographically best situated to more than 60 Macy's stores that are set to close.

Burlington sells a selection of merchandise it acquired directly from manufacturers and other supplies at prices that are typically lower than traditional retail and department stores.

Morris further noted that Burlington counts 47 locations within a five-mile radius of Macy's store closures. While this does fall short of TJX Companies Inc (NYSE: TJX)'s 100 overlapping stores, Burlington holds a key advantage that should be attractive to retail investors.

Burlington's 47 overlapping stores accounts for around 8 percent of its entire domestic square footage versus less than 5 percent for TJX. As such, the opportunity for Burlington to benefit from Macy's store closures is "more pronounced" based on its "relative small size."

Morris also suggested that off-price retailers like Burlington and others can benefit even further if Macy's store closures trigger co-tenancy clauses that allow other retailers to break their own leases.

Latest Ratings for M

DateFirmActionFromTo
Feb 2022Morgan StanleyMaintainsUnderweight
Feb 2022Credit SuisseMaintainsUnderperform
Feb 2022Deutsche BankMaintainsHold

View More Analyst Ratings for M

View the Latest Analyst Ratings

 

Related Articles (M)

View Comments and Join the Discussion!

Posted-In: CNBC Department Stores John Morris Macys Macys Store ClosuresAnalyst Color Analyst Ratings Media

Latest Ratings

StockFirmActionPT
SEDGB of A SecuritiesMaintains411.0
PTLOPiper SandlerMaintains28.0
AOUTLake StreetMaintains26.0
RAPTPiper SandlerMaintains52.0
OCXLake StreetMaintains6.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com