Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Macy’s, Inc. (M) CEO Terry Lundgren Expects Consumer Confidence To Return Right About Now

The future looks very bright for Macy’s, Inc. (NYSE:M), according to the company’s CEO, Terry Lundgren. While on an interview on CNBC he explained how the consumer confidence, the lack of which has been retarding the retail giant’s sales in the past is slowly fading away.

Macy's, Inc. (NYSE:M)

Although his comments came on Black Friday when the whole country was engulfed in the shopping fervour, owing to bargains offered by retailers, but Lundgren had Macy’s, Inc. (NYSE:M) long term future in mind when he made the statement.

“[…] I think the consumer is starting to feel better right about now, you are seeing that in the confidence numbers, you are seeing that, I mean in the gas prices that are obviously the big news today and all last week. That has got to help the consumer, puts more money in the consumers pocket. So, I feel very strongly that this is going to be a good finish to the year we should be off to a good start by 2015,” said Lundgren.

Oil prices have definitely had a positive impact on sales for Macy’s, Inc. (NYSE:M) and other retailers. With the current oil prices reaching lows that were seen by the market nearly four years ago, the consumers have much more disposable income.

Although Macy’s, Inc. (NYSE:M) missed the sales estimate for its third quarter earnings, but the growth in earnings was more than what analysts expected. This was mainly due to the lower costs that the retail giant has been able to incur. This is only going to get better going into the future, as oil prices decline.

Hence, the conditions prevailing in the energy market will have a two pronged effect on Macy’s, Inc. (NYSE:M)’s profitability. It will increase both the company’s sales and its margins. From the looks of it, considering the recent OPEC meeting, the oil still hasn’t hit its bottom, which is good news for retailers.

Video Embed Size: 530 X 298 640 X 360

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.