CNBC’s Jim Cramer said Macy’s turnaround plan could reinvigorate growth at the historic department store chain. Shares of Macy’s rallied 5% on Tuesday after topping earnings estimates for its fourth quarter and full year 2023. The company also announced a multi-pronged strategy that includes prioritizing top-line growth, accelerating its position in the luxury market, and simplifying its operations. “It’s very exciting,” Cramer said. “Changing the mosaic” by getting rid of underperforming stores and focusing more on luxury, “you end up with a story that should not be this low,” he added. M YTD mountain Macy’s stock performance. New Macy’s CEO Tony Spring, a retail veteran who led its Bloomingdale’s chain and took over from Jeff Gennette, called this a “bold new chapter” that will lead to “market share gains, sustainable profitable growth, and value creation for our shareholders,” according to the company’s press release. Cramer said he liked what the new CEO had to say. Spring called for the closure of up to 150 underperforming Macy’s locations while accelerating the growth of Bloomingdale’s, its higher-end brand that tends to deliver better same-store sales, and beauty store chain Bluemercury. “Among Macy’s Bloomingdale’s and Bluemercury … it would make it a more upscale company and people like that,” Cramer said. Cramer also highlighted the retailer’s strong cash position. Macy’s ended the year with $1 billion on its balance sheet and generated $1.3 billion in operating cash flow.
