Macy’s downgraded by JPMorgan

New York City JPMorgan cut its rating of Macy’s, saying it is not likely to beat sales forecasts and still faces uphill battles from its ongoing merchandising reorganization plan, according to a report in MarketWatch.

Analyst Charles Grom cut Macy’s to “neutral” from “overweight.” He said it is not likely Macy’s will post better-than-expected sales or profits in the first quarter.

“We believe that Macy’s is a long-term winner in the retail area, but the stock is due for a pause,” he said.

Grom explained that Macy’s lagged some of the competition year-to-date. Further, its “My Macy’s” merchandising program, wherein the chain’s many regional divisions are collapsed into its dual headquarters in Cincinnati and New York, is still being executed.

On April 1, Moody’s Investors Services downgraded Macy’s to junk status, citing declining consumer spending and its large debt load.