7 Best Department Store Stocks to Buy According to Hedge Funds

4. Macy’s, Inc. (NYSE:M)

Number of Hedge Fund Holders as of Q2 2024: 44

Macy’s, Inc. (NYSE:M) is an omnichannel retail company that operates stores, websites, and mobile applications under three brands: Macy’s, Bloomingdale’s, and Bluemercury. These brands sell a range of merchandise, including apparel, accessories, home furnishings, cosmetics, and other consumer goods. Macy’s (NYSE:M) operates stores in 43 states, Guam, the District of Columbia, and Puerto Rico.

Its fiscal second quarter 2024 results show meaningful progress across the company’s Bold New Chapter strategy. It experienced ongoing strength in fragrances and green shoots in women’s ready-to-wear apparel, including brands like Steve Madden, Donna Karan, Avec Les Filles, and others. Consumers also responded positively to the company’s ongoing private brand ready-wear reimagination, including improved quality and elevated fashion.

The breadth of merchandise offered at the company’s nameplates Bluemercury and Bloomingdale’s across aspirational to luxury price points is continually resonating with its audience, delivering strong gross margin expansion and better-than-expected SG&A as it continues to fund its growth investments.

Macy’s (NYSE:M) realizes that locations have diverse socioeconomic and geographical representation and thus has initiatives that are cross-functional. With two consecutive quarters of meaningful comp outperformance, it is now implementing women’s shoe and handbag staffing tests in around 100 additional go-forward locations. These tests are expected to provide valuable insights, helping improve and refine the company’s initiatives. It takes the fourth spot on our list.