The company, which operates 728 stores including 675 full-line locations nationally, said it wouldn’t specify which outlets will be closed until after it notifies affected employees.
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Macy’s shares rose 10 percent to $37.40 at 8:06 a.m.in early trading in NY after the report was released.
The location of the 100 stores will be announced “at a later date, once the company makes final decisions”, according to the statement.
The company said it recognizes that those locations aren’t yielding an adequate return on investment, and that they often “do not represent a customer shopping experience that reflects our aspirations for the Macy’s brand”.
Macy’s had been a stellar performer since the Great Recession, but in the past year and a half has seen slowing sales as it contends with competition on all fronts and changing shopping patterns.
The retailer is selling its highly successful men’s store in Union Square, San Francisco, with plans to reinvest the valuable real-estate proceeds in other parts of the company, such as beefing up its digital bona fides.
WCPO Insiders will learn why those Macy’s stores are the most vulnerable to closure.
On top of eliminating stores, Macy’s plans to optimize its real estate portfolio, capitalizing on situations where the development or redevelopment of a structure exceeds the value of its existing use, executives said.
The Holyoke Mall store is the company’s lone location is Western Massachusetts after stores at the Eastfield Mall in Springfield and the Berkshire Mall in Lanesborough closed earlier this year. Macy’s hasn’t announced which locations will close. That topped the $5.77 billion estimate from FactSet.
The company closed 40 of its stores earlier this year, but that didn’t stop yearly same-store sales from falling 2 percent last quarter.
Net income in the quarter ended 30 July came in at $11m or 3 cents a share, down from $217m or 64 cents the year before.
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The results did beat Wall Street estimates, however, and its shares climbed 17.09 percent to $39.81 yesterday. Macy’s expects earnings per diluted share – excluding asset impairment charges and retirement settlement charges – in fiscal 2016 to be in a range of $3.15 to $3.40.
