...Driving Share Gains: Macy's, Inc. (Macy's) has accelerated its market share gains in the mid- tier department store space with comparable store sales (comps) significantly outperforming its peers over the past four years. The company's strong operating momentum has benefited from its My Macy's localization initiatives, omnichannel offerings, and strong customer service. Fitch expects Macy's will continue to take market share on top-line growth of 2%¡3% relative to Fitch's industry growth expectation of negative 1% to negative 2% in 2014/2015. Stable Credit Metrics: Macy's generates above average operating margins, with EBITDA margin expansion of over 100 bps over the last three years to 13.8% on strong top-line growth. Adjusted debt/EBITDAR was at 2.3x at the end of 2013 and Fitch expects adjusted debt/EBITDAR to remain in the mid-2.0x over the next two to three years, assuming low single- digit growth in comps and EBITDA. Strong Liquidity and Manageable Maturities: Liquidity remains strong,...
