Macy's Stock Faces a Test of 'A Bold New Chapter' as It Drops Over 5%

NYSE

January 12, 2026 at 09:16 PM

Macy’s (M) Shares Slide Over 5%, Market Cap Drops $297 Million

On January 12, Macy’s (NYSE: M) shares tumbled more than 5% intraday, closing at $21.92. This decline erased about $297 million (≈₩420 billion) from the company’s market capitalization. Amid ongoing volatility since the start of the year, investors are both skeptical and hopeful that the operational overhaul plan A Bold New Chapter will drive real earnings improvements.

## Restructuring Offline Stores Macy’s has already flagged a major offline footprint reshaping: - Close roughly 150 underperforming stores over three years - Concentrate capital on about 350 high-potential flagship locations - Fully redesign merchandise assortments, staffing and visual merchandising at the pilot *First 50* stores

According to the SEC filing, these pilot locations are already outpacing the broader store base in customer recommendation scores and sales.

## Short-Term Profitability Concerns Despite the long-term agenda, today’s sell-off highlights renewed worries over near-term results. For fiscal 2024, Macy’s defined the year as one of “transformation and investment,” emphasizing restructuring and digital/luxury business investments over immediate profits. Key factors weighing on margins in the short run include: - One-time costs from store closures - Inventory write-downs and adjustments - Automation and technology investments

Long-Term Growth Outlook

Long-term investors remain more optimistic. Macy’s continues to outline a blueprint for expansion and remodelling—anchored by high growth in its luxury and beauty subsidiaries (Bluemercury, Bloomingdale’s)—through at least 2026. Rising traffic to digital channels and steady increases in beauty-category sales counter the narrative of a structurally declining department-store model. Whether today’s 5% drop proves a temporary blip or signals waning confidence in A Bold New Chapter will depend on upcoming quarterly results and the pace of store closures and asset sales.