Analysts also contend that Macy’s, along with others in the retail sector, could stand to shed more weight from their bloated store counts.
Advertisement
Meanwhile, experts said that the latest warning from Macy’s mirrored the ongoing shifts in the retail industry. But its USA same-store sales rose 5%, excluding various negative impacts, short of forecasts for 5.4%, Perkins said. Macy’s estimates their cost-cutting measures will save $400 million.
Four locations closed before the end of 2015, with the remaining 36 closing in the next few months. The Macy’s at the Berkshire Mall in Lanesborough which employs 58 people, and the location at the Enfield Square Mall in CT which has about 84 employees.
Last holiday season was quite challenging for the giant retailer especially due to unusually warm weather and lower in-stores purchases by tourists because of strong USA dollar.
The shares of Macy’s are trading higher today despite reporting weak comparable sales performance in November and December past year. Macy’s said about 80% of its sales declines can be attributed to shortfalls in cold-weather goods like coats, sweaters, hats, gloves and scarves. The long-term pressures that are weighing on stores like Macy’s, most notably rising Internet sales, are not going away and may force investors to rethink the bonds’ exposure to retailers, said Lisa Pendergast, a Jefferies Group LLC strategist.
Macy’s, which has its corporate offices and NY and Cincinnati, says its sales at its existing stores dropped by 5.2% during the shopping season between November and December.
The company has begun a search for a senior-level real estate executive to join the company to oversee and manage real estate activities, including the leadership of any partnerships or joint ventures.
The stock suffered through a rough 2015 and has fallen more than 40 percent in the last 12 months.
“We can operate more effectively with an organization that is flatter and more agile”, Lundgren said, “so we can pursue growth and regain market share”.
Macy’s announced more store closures Wednesday, in light of declining 2015 sales.
Separately, the retailer has lowered its full-year earnings per share guidance to range from $3.85-3.90, down from $4.20-4.30.
Advertisement
Macy’s started business at the mall in 2006 when it took over the Kaufmann’s store.
