Macy's (NYSE:M)’s shares are losing value after the company posted first quarter results that were worse than what analysts had expected. The Ohio-based department store company’s comparable sales decreased by 5.2% in the period, comp sales in the full year 2017 are expected to drop by 2.2%-3.3%.
However, some analysts think that the recent sell-off around Macy's (NYSE:M)’s stock presents an attractive investment opportunity as the stock is set to gain value in the second quarter amid several factors. Macy's (NYSE:M)’s management has taken a lot of measures to boost sales, including the introduction of a new inventory model at the Macy’s shoe sections, closure of about 100 stores and other cost cutting initiatives.
Macy's (NYSE:M)’s also pays an attractive dividend yield (over 6%) to its shareholders. The company has a strong cash flow which could back the hefty dividend for years to come.
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