It now operates 675 full-line stores. Macy’s officials said the locations of the 100 stores closing will be announced at a later date.
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After the announcement, Macy’s stock was up about 15 percent during the early hours of trading today.
The company did not identify which stores it will close and said some may remain open past this year depending on their current lease expirations.
The results surpassed Wall Street expectations.
People are spending more of their money on home improvement as well as experiences like travel or spas. Macy’s, which flourished during the Great Recession, is now believed to be suffering from increased competition from fast-fashion retailers like H&M, discounters like T.J. It opened six off-price Macy’s Backstage stores in 2015 and is also expanding the footprint for its Bluemercury beauty chain. He doesn’t think this is a sign that department stores are going the way of bookstores like Border’s, which couldn’t recover from sales lost to online shopping. And it’s expanding its offerings on exclusive launches including one backed by Sir Elton John and Lady Gaga.
Macy’s has locations at both Northgate Mall and the Streets at Southpoint. That’s down about 23 percent from the January 2007 peak of 868 total.
Macy’s will be closing about 100 of its more than 700 stores across the US, the company announced today, as the company seeks to divert resources to its online operations.
Net income slumped to $11 million, or 3 cents per share, in the second quarter ended July 30, mainly due to $255 million in charges related to the upcoming store closures. That compares with $217 million, or 64 cents per share, in the year-ago period.
Excluding the impact of earlier store closings and other items, Macy’s per-share earnings were 54 cents, down from 94 cents in the same quarter a year earlier. Revenue fell 3.9 percent to $5.87 billion. Five analysts surveyed by Zacks expected $5.75 billion.
The retail chain struggled with sales and profit declines in the last several quarters.
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Earlier this year, Macy’s leaders said they needed to work on three fronts to improve the company’s standing: speed up initiatives that are working, excite customers with new merchandise and expand cost-cutting efforts. Its previous estimates called for a 1 percent drop in same-store sales, and earnings of between $3.80 and $3.90 a share.
