Bullish options flow was detected in Macy’s stock on December 2, 2019. 19,987 calls traded, 3x expected, and implied vol increased by 3 points to 41.21%. 12/6 weekly 15.5 calls and 12/13 weekly 15.5 calls were the most active options, with total volume in those strikes near 13,700 contracts.

Bullish options flow detected in Macy’s stock on December 2, 2019

Click here to download the complete options flow in M stock on December 2, 2019, in CSV format.

The crazy thing about the bullish options flow is that the WSJ just ran a story today how Macy’s is a target of short sellers.

On December 2, 2019, the WSJ published that Macy’s (M), Kohl’s (KSS) and Nordstrom (JWN) are popular targets among short sellers, as they focus on brick-and-mortar retailers, The Wall Street Journal’s Michael Wursthorn reports. Financial data firm S3 Partners tells the publication that short positions against the SPDR S&P Retail ETF hit 441% of the fund’s available shares last week. Source: https://www.wsj.com/articles/investors-bet-on-more-pain-for-retailers-11575196206

On December 1, 2019, Black Friday shopping at physical stores saw a 4.2% increase in sales compared to 2018, according to Fiserv’s (FISV) First Data Insights. Black Friday brick-and-mortar sales were up 4.2%, with the greatest increase over normal shopping activity seen across electronics and appliances, sporting goods, and clothing/shoe stores. Electronics and appliance stores saw the largest average ticket size at $214 per transaction. Shoppers demonstrated their propensity to travel for a good deal, with 38% traveling more than 10 miles, and 25% traveling more than 25 miles to shop at a physical store. When paying with a card, consumers chose credit — 57% of card-based spending was via credit card, compared to 43% for debit. Spending via mobile wallets was up 82% compared to 2018.

On November 21, 2019, Macy’s, Inc. (NYSE: M) reported results for the third quarter 2019. The company also lowered its annual sales and EPS guidance for fiscal 2019.

  • Comparable sales decline of 3.9% on an owned basis; decline of 3.5% on an owned plus licensed basis
  • Diluted EPS of $0.01 and Adjusted Diluted EPS of $0.07
  • Company lowered its annual sales and EPS guidance
  • Company prepared to execute a strong holiday season

“After seven consecutive quarters of comparable sales growth, we experienced a deceleration in our third quarter sales. While we anticipated a negative comp as we were lapping a very strong third quarter last year, the sales deceleration was steeper than we expected. However, having cleared the excess inventory we faced earlier in the year, we were able to take a more balanced approach to sales and profit in the quarter, resulting in significantly improved margin compression versus the first half of the year,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “Our third quarter sales were impacted by the late arrival of cold weather, continued soft international tourism and weaker than anticipated performance in lower tier malls. We also experienced a temporary impact on our e-commerce business due in part to work on the site in preparation for the fourth quarter. The team has completed that work, the site is upgraded and our customers can expect an improved experience this holiday season. Based primarily on the impact of our third quarter sales trend, we are updating our annual guidance.”

“We have confidence in our holiday strategies. The Macy’s, Bloomingdales and Bluemercury teams are aligned and committed to delivering a great experience for our customers in our stores, on our digital sites and through our mobile apps. We have fully updated our Growth150 stores and completed the 2019 expansion of Backstage. We have curated an expanded gift assortment with great values in all categories and developed a powerful marketing calendar for both our best and occasional customers. This holiday season, we also have even more flexible, secure and convenient fulfillment options for our customers including Pick Up in Store and Same Day Delivery,” continued Gennette.

finviz dynamic chart for  M
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