Four-fifths of the company’s sales declines could be traced to a drop in demand for coats, sweaters, boots, hats, gloves and scarves, Lundgren said.
Advertisement
Shoppers enter a Macy’s in Hanover, Mass. Macy’s will lay off up to 4,800 of its 163,000 workers after a disappointing holiday season..
A Macy’s store in Irvine will close, the company said Wednesday.
Aside from cutting jobs, Macy’s is also shutting down 40 locations, following through on an announcement in September, Bloomberg Business reported.
Macy’s parent company, May Department Store Co., bought out Federated in 2006 and changed the store’s name to Macy’s.
Macy’s shares were up more than 3% in after-hours trading as investors digested the news of the cost savings. He said retailers witnessed an acceleration of the shift toward online and mobile holiday spending in 2015.
“It’s highly unlikely that the store would close, they do very well”, said Wade Lord, general manager responsible for the Kukui Grove Center, in a previous interview with The Garden Island.
As the CEO of Macy’s, Terry Lundgren has been one of the staunchest believers in the traditional department store model. Some of those whose jobs are eliminated will be moved to other positions. Many are particularly painful; layoffs number in the thousands, and many stores will close.
Macy’s is the first retail giant to release holiday sale numbers, and says that many employees will be re-located into different positions.
Advertisement
Macy’s said it planned to open another 50 of its off-price Macy’s Backstage stores in the next two years (most of which will take up space within existing Macy’s locations). Macy’s cut its fourth-quarter earnings guidance to $2.18 to $2.23 per diluted share, excluding those charges, versus a consensus forecast of $2.53 per share, according to Thomson Reuters. This is at least some good news for Macy’s, whose stock tumbled by more than 40 percent a year ago, making it one of the 10 worst performers in the S&P 500 in 2015.
