Nowadays, everyone knows that having a job is not the only source of income. It can also be successful investing in the shares of big companies, including Macy's, a US chain of department stores.

Macy's Inc., whose history began in the 19th century, was able to stand the test of time. It successfully navigates present challenges, demonstrates good financial results, and makes grand plans for the future. So, let’s find out how you can earn money from its shares.

Largest chain of department stores

Macy's is a 163-year-old retailer with department stores across the world. The firm was founded by Rowland Hussey Macy in 1858. The businessman had already made several attempts to open stores in Massachusetts before, but they went bankrupt every time due to high competition and low demand.

His RH Macy & Co store was opened in New York in 1858. It quickly turned into a profitable business. First-day sales totaled $11.06. However, by the end of the first year, sales grossed $85,000. Mr. Macy bought out nearby stores to expand his own.

The company was inherited by Macy’s relatives after his death. In 1895, the Strauss brothers became the owners of Macy's. In the second half of the 20th century, Macy’s stores were opened across the United States, and the firm transformed into one of the biggest retail chains.

Facts about Macy’s:

  • department store in Manhattan on 34th Street is one of New York’s landmarks
  • store chain was among the first to divide clothes by size
  • Macy's set a date for Thanksgiving in the US. Since 1924, New York City has hosted the Macy's Thanksgiving Day Parade every fourth Thursday of November. Millions of people travel to New York to watch one of America's biggest holiday parades.

In the 1980s, the chain had to close stores due to financial obstacles and went through several mergers with other companies. Today, it is one of the largest retail chains in the United States.

The retailer was acquired by Federated Department Stores in 1994. The holding changed its name to Macy's Inc. in 2007.

Profit of $239 million

Nowadays, Macy's Inc. is the leading fashion retailer, headquartered in New York. The chain has over 730 stores and employs more than 90,000 people. Macy's Inc. products are delivered to more than 100 countries.

Macy's Inc. comprises three powerful retail brands: Macy's, Bloomingdale's, and Bluemercury.

Subsidiaries of Macy's Inc:

  • Macy's: chain of department stores selling clothes, footwear, furniture, makeup, and household goods
  • Bloomingdale's: chain of luxury department stores
  • Bluemercury: chain of beauty stores

The company reported strong financial results in Q3 2021. Sales soared 33% to $5.4 billion from the same period in 2020. Its net income totaled $239 million compared with a loss of $91 million a year earlier.

In the wake of the pandemic, the retailer became actively involved in online retailing. Macy's Inc. does not rule out the possibility of dividing its business into offline and online stores. This is now one of the driving factors for its share value.

Macy’s shares

Macy's Inc. is listed on the New York Stock Exchange under the ticker M. Last year, its share value hovered in the range between $10 and $38. Today, Macy's Inc. is traded at $28-29 per share.

Factors driving Macy’s Inc. share price:

  • return on equity and demand
  • financial performance of the holding versus competitors
  • major events affecting the company and its competitors
  • state of the American and global economies
  • number of stores and their income
  • force majeure
  • stock market trends
  • exchange rates

For example, Macy's Inc. shares gained 14% on August 19, 2021, when the company announced it would return to paying dividends. On November 18, the price swelled by 21% amid a strong Q3 earnings report.

Between 2008 and 2015, Macy's Inc. shares hit an all-time high of $73.5. By early 2020, the price fell to $15 due to serious competition from online stores and then plunged to $4.5 in the wake of the pandemic. In 2021, the retailer’s share value went up.

You can find all the latest market news in the Forex Analysis section on the InstaForex website.

Dividends and trading

There are a number of ways to make a profit from Macy's Inc. shares as well as from those of other big companies. For instance, you can buy and then sell their shares at a more profitable price or receive dividends. This year, the retailer makes quarterly dividend payments of $0.15 per share.

The Macy's Inc. share value is projected to rise by 25% this year, which means that the average price of one share may increase to $35.5.

Another option would be CFD trading. In this way, you can yield profit from swings in quotes. All you need to do is enter the market at the right time and make an accurate price forecast. In this case, a CFD broker will act as an intermediary between you and the exchange.

Benefits of trading with InstaForex:

Final thoughts

In 2022, Macy's Inc. intends to expand growth and develop all its divisions. The main driving force for the retailer this year will be a gradual recovery in consumer demand and the launch of a new online marketplace announced by a number of its department stores.

You can become a part of Macy's Inc. not only by purchasing goods but also by investing in the company. InstaForex is here to help you do it quickly, accurately, and safely.