|Bid||6.43 x 1800|
|Ask||6.44 x 800|
|Day's Range||6.26 - 6.75|
|52 Week Range||4.38 - 23.40|
|Beta (5Y Monthly)||1.56|
|PE Ratio (TTM)||3.51|
|Earnings Date||Jul. 01, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Mar. 12, 2020|
|1y Target Est||7.77|
(Bloomberg Opinion) -- The IPO market just got a shot of caffeine from JDE Peet’s BV. Don’t expect other consumer listings to get such a rush.The owner of Peet’s Coffee, Douwe Egberts, Kenco and Tassimo on Friday priced shares in its initial public offering at 31.50 euros, in the upper half of the offering range, valuing the company at 15.6 billion euros ($17.3 billion), and rose to about 35.50 in mid-morning trading.The biggest European IPO this year, pulled off in a swift 10 days, is a remarkable feat for a consumer business in the midst of a pandemic and a looming global recession. But JDE Peet’s has been uncannily well-placed to capitalize on changing consumer habits during lockdown, the prospects for reopening and a resurgence in equity markets. The Dutch company was floated by JAB Holding Co., the investment fund backed by Germany’s billionaire Reimann family. Cornerstone investors, including funds run by George Soros’s firm, had agreed to take up a third of the offering, setting the tone.In a world crowded with coffee chains, JDE Peet’s gets 80% of its sales from coffee that is drunk at home. That meant it benefited as corner cafes shuttered and people working from home were forced to become their own baristas. Now that they can start going out again, it’s ready to serve them their favorite hot beverage too at the Peet’s Coffee chain. And just as Nestle SA benefited from people looking to stock up on the Starbucks-branded coffee it sells in supermarkets, so JDE Peet’s may gain new customers at its cafes if they discovered its products in the grocery store during lockdown. As consumers navigate post-lockdown life, JDE Peet’s looks well insulated. That may explain why the valuation, as of mid-morning trading, is approaching that of Starbucks Corp. on a calendar 2019 enterprise-value-to-Ebitda basis. With consumers likely pulling in their purse strings, homemade coffee may be more popular than pricey takeaway lattes. Yet the valuation may also reflect optimism about reopening, and expectations that people will be eager to get out and about. Early indications from U.S. retailers, such as discount-chain owner TJX Cos Inc. and even department store Macy’s Inc., are that sales have been stronger than expected since Americans were able to shop in person once again.And let’s not forget about the IPO timing with stock markets gaining from their lows in March. That may be one reason why Peet’s was so keen on an accelerated book build: to avoid any sudden market turbulence.The fortunate confluence of factors may not come together for other consumer-facing groups looking to float or spin off a division. L Brands Inc.’s desire to eventually separate its Victoria’s Secret lingerie chain comes to mind. It was grappling with a tired image and too many stores even before the Covid-19 outbreak.As for Peet’s, the successful float leaves it with firepower for further acquisitions. It plans to use the proceeds to cut debt — it aims to reduce the leverage ratio from 3.6 times to below 3 times by the end of the first half of 2021 — but it gets an acquisition currency in the form of equity.Competition for coffee assets has been intense. There was a flurry of deals two years ago with JAB’s $2 billion purchase of Pret A Manger, which sells coffee as well as food to go; Coca-Cola Co.’s $5.1 billion swoop on Costa Coffee; and Nestle’s $7 billion deal for the rights to sell Starbucks coffee in supermarkets.But JDE Peet’s could get lucky here, too, particularly in the market for drinking coffee outside the home. With the lockdown-induced distress in malls and on main streets, it may be able to grab something to go for a better price.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- The amount of new debt issued this year in the U.S. investment-grade corporate bond market will reach $1 trillion today, by far the fastest pace in history. The implications of that milestone depend on how you look at it.For businesses that had been ravaged by the coronavirus pandemic and the ensuing nationwide lockdowns, access to capital markets was a lifeline to get through the worst of the economic collapse. Sure, Carnival Corp. had to offer interest rates like a junk-rated borrower and Boeing Co. needed to include a so-called coupon step-up provision to offset jitters that it could lose its investment grades. But, in the words of Federal Reserve Chair Jerome Powell, these deals avoided turning “liquidity problems into solvency problems” for brand-name American companies.It’s worth remembering that until the Fed stepped in with extraordinary support for credit markets, averting widespread failures was far from guaranteed. Investors pulled a staggering $35.6 billion and $38 billion from investment-grade funds in the weeks ended March 18 and March 25, respectively. Before 2020, the previous record was $5.1 billion of outflows. I wrote on March 19 that bond markets were veering into a vicious cycle that could get ugly in a hurry — four days later, the Fed announced what would end up becoming a $750 billion backstop for corporate America.Now, the Fed hasn’t actually had to buy any individual bonds yet, a fact that Powell seems proud to share. “We may have to be lending money to those companies, but even better, they can borrow themselves now, and a lot of that has been happening and that’s a really good thing,” he said during May 19 testimony before the Senate Banking Committee.Most people would probably agree with that assessment, at least for the immediate future as the country grapples with restarting the world’s largest economy. But what about the longer-term view?Here, the rampant borrowing paints a more sobering picture. As of late April, 1,287 issuers worldwide rated between AAA and B- by S&P Global Ratings were considered at risk of a potential downgrade, up from 860 in March and 649 in February. That surpasses the previous all-time high set in 2009. “Generally, we expect heavy credit erosion in coming months as issuers, especially those in the lower-rated spectrum come under heavy fire from poor earnings, continued difficulties in managing cost structures, and market volatility creating limited funding opportunities,” said Sudeep Kesh, head of S&P’s credit markets research.That’s bad enough, but doesn’t even strike at the heart of the issue. Last year was supposed to be the beginning of a broad “debt diet” among companies that borrowed huge sums to finance mergers and acquisitions during the longest expansion in U.S. history. That didn’t end up taking place on a wide scale. Even a success story like AT&T Inc., which made headway in trimming its debt stack, still found itself back in the bond market recently, borrowing $12.5 billion on May 21 in what was the biggest deal since Boeing’s $25 billion blockbuster offering.When it comes to companies directly impacted by the coronavirus pandemic or structural changes to their industries, the “big three” of S&P, Moody’s Investors Service and Fitch Ratings haven’t shied away from taking action. Ford Motor Co., Kraft Heinz Co., Macy’s Inc. and Occidental Petroleum Corp. are just a few of the “fallen angels” that lost their investment grades earlier this year.The rating companies haven’t been quite as keen to react to high leverage metrics. I frequently refer back to this feature from Bloomberg News’s Molly Smith and Christopher Cannon, which found that of the 50 biggest corporate acquisitions in the five years through October 2018, more than half of the acquiring companies increased their leverage to a level that would seemingly merit a junk rating but remained investment grade on the assumption that they’d take that leverage down in the coming years. Those expectations seemed ambitious in 2018, when the economy was seemingly invincible. Now, no one can truly expect companies to focus on right-sizing their debt. Corporate leaders are rightfully eager to raise cash to get to the other side of the pandemic, especially with all-in yields not far off from record lows. The vast majority of the $1 trillion in borrowing so far this year was by no means imprudent.In the years ahead, however, the overhang from this issuance spree will inevitably weigh down credit ratings. A company with more debt presents a greater risk of missed interest payments than if it had fewer fixed obligations. Fortunately, for much of the previous expansion, firms had no issue finding investors willing to buy their long-term securities. That practice of rolling over debt and extending maturities might very well be the norm in the months and years ahead, too. Still, if the first five months of 2020 are any indication, investment-grade bondholders will have to get comfortable with even more bloated balance sheets and the prospect of further credit downgrades. For better or worse, with the confidence that the Fed has their back, that seems like a risk investors are willing to take.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Brian Chappatta is a Bloomberg Opinion columnist covering debt markets. He previously covered bonds for Bloomberg News. He is also a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Macy’s, Inc. (NYSE:M) (the "Company" or "Macy’s") announced today the pricing of an offering (the "Offering") of $1.3 billion aggregate principal amount of 8.375% senior secured notes due 2025 (the "Notes") in a private offering at an offering price of 100% of the principal amount thereof, which represents a $200 million increase in the previously announced size of the Offering. The Notes will be senior, secured obligations of the Company. The Notes will be secured on a first-priority basis by (i) a first mortgage/deed of trust in certain real property of subsidiaries of Macy’s that has been or will be transferred to subsidiaries of Macy’s Propco Holdings, LLC, a newly created direct, wholly-owned subsidiary of Macy’s ("Propco") and (ii) a pledge by Propco of the equity interests in its subsidiaries that own or will own such transferred real property (together, the "Collateral"). The Notes will be, jointly and severally, unconditionally guaranteed on a secured basis by Propco and its subsidiaries and unconditionally guaranteed on an unsecured basis by Macy’s Retail Holdings, Inc., a direct, wholly-owned subsidiary of Macy’s.
Post coronavirus it's all about location. Location, Location.
Shares of several brick-and-mortar retailers were trading higher on Wednesday morning as the broader market rallied for a second day on rising optimism about the post-pandemic economy. Designer Brands (NYSE: DBI) was up 5.2%. Gap (NYSE: GPS) was up 5.5%.
Don't expect safety measures will fall by the wayside at Target once life gets back to some form of normal after the COVID-19 pandemic. Here's what Target's chairman and CEO Brian Cornell told Yahoo Finance.
Target Chairman and CEO Brian Cornell weighs in on the state of the retailer amidst the coronavirus pandemic in a Yahoo Finance interview.
Shares of several upscale retail-chain operators were rising on Tuesday, on growing investor optimism after Macy's (NYSE: M) announced a significant refinancing deal. News that troubled department-store giant Macy's has secured a major refinancing deal seemed to be giving investors reason to bid up battered retail stocks on Tuesday.
Shares of Macy's (NYSE: M) are moving higher today, up about 8.1% as of 10:15 a.m., after the company announced a refinancing plan that includes a $1.1 billion secured note offering and a new $3 billion line of credit. Macy's said that it is offering $1.1 billion in senior notes secured by some of its real estate assets, including three New York City properties, 35 mall stores, and 10 of its distribution centers. Macy's will use the proceeds of the notes, which mature in 2025, along with some of its cash on hand to pay off its current $1.5 billion line of credit.
While Macy's (NYSE: M) preliminary quarterly forecast showed a huge decrease from 2019, the retailer still has a chance for improvement. The company has made all sorts of adjustments to stem the hemorrhaging of sales and recently announced it has named a new interim CFO. Current CFO Paula Price announced her departure in April and is set to leave on May 31.
The department store chain drew down a $1.5 billion credit facility in March as it had to temporarily close stores and limit its business to its app and website due to the COVID-19 pandemic. A number of U.S. companies are also pledging their assets and properties to raise money and clear debt as businesses reopen after a long government mandated lockdown.
Macy’s, Inc. (NYSE:M) (the "Company" or "Macy’s") announced today that it is offering, subject to market and other conditions, $1.1 billion aggregate principal amount of senior secured notes due 2025 (the "Notes") in a private offering. Macy’s intends to use the net proceeds from the offering of the Notes, along with cash on hand, to repay all amounts outstanding under its revolving credit facility.
Over 30 million people have filed for unemployment benefits in the U.S., and the country faces a major recession. Macy's (NYSE: M) and Nordstrom (NYSE: JWN) are having to endure an extremely challenging scenario. From 2015 to 2020, Macy's revenue has gone from $28 billion down to $25 billion.
The first quarter was bad and the second quarter could be even worse, but Macy's management also shared some good news last week.
Yahoo Finance chats with Walmart U.S. CEO John Furner about the state of the world's large retailer amidst the COVID-19 pandemic.
Walmart continues to push forward with opening coronavirus testing sites at its stores.
Macy's (M) projects reporting operating loss in first-quarter fiscal 2020. However, its digital sales remain robust.
Although Macy's (NYSE: M) may be facing considerable losses, investors were cheered by a preliminary earnings report published by the troubled retailer on Thursday. Macy's total debt may also be worse. On the plus side, cash and equivalents at Macy's disposal are expected to more than double.
Shares of department store giant Macy's (M) saw a nice gain on Thursday, closing up 5.5% after reporting preliminary Q1 results.
Greg Portell, Partner & Head of Global Consumer Industries & Retail Practice at Kearney, joins The Final Round to discuss the latest earnings out of the retail sector, Amazon Prime Day, and his expectations for Black Friday 2020.
The economic recovery from the COVID-19 pandemic will be slow, one top economist tells Yahoo Finance.
Victoria’s Secret parent company L Brands reported a 37% drop in sales in its first-quarter earnings report. Yahoo Finance’s Brian Sozzi joins the On The Move panel to discuss how retailers are faring during the virus outbreak.
As Memorial Day Weekend approaches, Macy's plans to reopen stores in select locations. Yahoo Finance's Alexis Christoforous, Brian Sozzi and Ines Ferre discuss that and the retailer's first-quarter preliminary results.
"We anticipate that our sales recovery will be gradual and that for a period of time, we will be a smaller company," Chief Executive Jeff Gennette said on a call with investors. The global health crisis has forced brick-and-mortar retailers to tap credit lines, lay off employees and suspend dividends and buybacks in a bid to stay afloat amid store closures. Macy's, which shut all of its 775 stores on March 18, hired investment bank Lazard Ltd <LAZ.N> to explore options for bolstering its finances, Reuters reported last month.