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ERROR: type should be string, got "https://www.barrons.com/articles/macys-bad-news-parade-1483767193\nTrader Extra\nMacy’s Bad-News Parade\nBen Levisohn\nShoppers at Macy's flagship store\nFor retailers, 2017 began like a Die Hard film, with investors expecting a party, only to see the metaphorical windows blown out.\nOn Wednesday afternoon, Macy’s (M) and Kohl’s (KSS) both announced weaker-than-expected sales at stores that had been open for at least 13 months, and lower 2016 earnings guidance to boot. That both stocks would get smacked down shouldn’t come as a surprise: Macy’s plunged 14%, while Kohl’s plummeted 19%.\nWhat is surprising is that just about every other retailer got knocked down as well. Department-store operators Nordstrom (JWN) tumbled 6.9%; Ascena Retail Group (ASNA), the parent company of Ann Taylor, dropped 6.6%; and Under Armour (UA), which will soon start selling its wares at Kohl’s, fell 1.4%. It was large-scale post-New Year destruction.\nIt isn’t that Americans haven’t been shopping. They just haven’t been shopping at traditional retailers. Amazon.com (AMZN), for one, shipped over a billion items in total during the holiday season, and, as BMO Chief Investment Officer Jack Ablin points out, sales at department stores have dropped to $12.7 billion, down $7.2 billion from 2001. Online sales are now three times that of department stores.\n“The kids don’t hang out at the mall—unless Pokémon Go leads them there,” Ablin wrote in a note to clients.\nStill, Guggengheim analyst Robert Drbul can’t help but remain bullish on Macy’s—despite its more than 10% drop last week. Yes, Macy’s same-store sales fell 2.1% during November and December, missing Guggenheim’s forecast of a 1% slide. But its balance sheet remains strong—even as Standard & Poor’s put its credit rating on watch for a downgrade—while offering investors a 4.9% dividend yield. Macy’s could also save $550 million from its cost-cutting initiatives, which would allow it to spend $250 million to boost its business.\nMore From Barron’s\nWhy a Defense Analyst Likes Raytheon and General Dynamics\nPNC Stock: A Win-Win for Investors\nAquaVenture Investors May Get Swamped\nAfter Thursday’s stumble, Macy’s trades at just nine times Drbul’s 2018 earnings forecast, leaving plenty of room for its multiple to expand if signs of improvement begin to show. As a result, he maintained his Buy rating, even as he lowered his price target to $38 from $48.\nDon’t forget: Macy’s is still the same company that got so many excited in August, when it first announced its current wave of store closings, building sales, and layoffs. Along with its sales and guidance last week, Macy’s identified the first 68 of its planned 100-store closings—stores in San Diego, Las Vegas, and Minneapolis were among those on the chopping block. It also said it would fire more than 10,000 people, while removing unnecessary layers of management, making it a smaller, more nimble company.\nMacy’s is still one of the few department-store operators that has recognized the need for fewer stores brought about by the rise of online shopping, and is actually doing something about it.\nAfter Thursday’s drop, Macy’s is almost back to where it was before its August announcement. It closed at $30.86 last week, above its four-year low of $30.07 on May 18.\nThat also means if you buy Macy’s near $31, you don’t have much downside before knowing that it was a bad move. If the stock were to trade below $30—breaking the support that appears to be propping it up—it would be time to bail. That’s a risk I’d be willing to take.\nSee Trader Extra: Trump’s New World Disorder\nEmail: ben.levisohn@barrons.com\nFollow @ben_levisohn\nLike Barron’s on Facebook\nFollow Barron’s on Twitter"