Macy’s used to be one of the few giants still dominating the retail industry. Their stock price was trading at a very healthy $72.00 per share. Then in July 2015 they made the unfortunate mistake of emphatically claiming they were cutting ties with Donald Trump, who then was just one of the many candidates vying for the Republican Presidential nomination.
At the time it may have seemed like the right decision. Trump had just made what some considered to be controversial comments about illegal Mexican immigration. However, fast forward to today and Macy’s stock has plummeted to a price of $32.58 a share.
Macy’s made the decision to value political correctness over their own revenue. They also chose to value customers belonging to what retailers call the “multicultural market”. Which is of course rapidly growing as America’s demographics change. But in doing so they turned their back on customers who have been spending their money at Macy’s stores for generations.
In total, Macy’s shareholders have lost nearly 54% of their equity. If you were a culturally conscious investor that bought in after July 2015 you have lost most of the value of your shares.
“You can’t stump the Trump” is turning out to be one of those well known sayings that always holds true.