11 Best Fashion Stocks To Buy Now

6. Macy’s, Inc. (NYSE:M)

No. of Hedge Funds as of Q2 2024: 44

Macy’s (NYSE:M) is an omni-channel retail company that operates department stores selling apparel, accessories, cosmetics, home furnishings, and other consumer goods. Its brand portfolio includes Macy’s, Bloomingdale’s, and Bluemercury. It operates stores in 43 states, the District of Columbia, and Puerto Rico, and Guam. The company conducts its operations through Macy’s, Macy’s small format, Macy’s Backstage, Bloomingdale’s, Bloomingdale’s The Outlet, Bluemercury, and Bloomie’s.

It also holds a license agreement with Al Tayer Insignia to operate Bloomingdale’s in the United Arab Emirates and Kuwait. Macy’s principal private label brands include Alfani, Bar III, And Now This, Belgique, Aqua, Club Room, Charter Club, Family PJ’s, Epic Threads, Holiday Lane, Giani Bernini, Hotel Collection, Home Design, Ideology, Hudson Park, and others.

Macy’s (NYSE:M) is working to maximize profitability by closing down stores across the US with inadequate sales and opening small-format stores in their place. It plans to open around 30 new small-format stores through 2025, and recently hired more than 31,500 full and part-time employees for the upcoming holiday season.

To counter the effects of the change in consumer behavior on its sales, the company shifted its marketing calendar to balance value and fashion while aligning its assortments. It improved its promotions to deliver more personalized and targeted messages across brands and categories, invested in areas with proven product strength, and slashed its exposure to areas of softer demand. Such initiatives shifted the course of Macy’s (NYSE:M) business late in Q2, highlighting the resilience of the company’s operation model.

The company is also targeting weaknesses in men’s apparel, home, and handbags. In men’s clothing, it is focusing its attention on the contemporary, which it claims to be in a bright spot for growth. Macy’s (NYSE:M) also launched a new private brand that specifically targets customers under 40 in an attempt to elevate consumer engagement. It is also introducing diversity in its handbag collection to grow its portfolio.

As of Q2 2024, 44 hedge funds hold stakes in Macy’s (NYSE:M), with Arrowstreet Capital being the most prominent shareholder with 9.5 million shares. It ranks sixth on our list of the top fashion stocks to buy.