Macy's has announced plans to shutter 65 stores
Macy’s has announced plans to shutter 65 stores across the United States after the holidays, increasing total closures to 150 by 2026. The company operates 435 locations nationwide, including Bloomingdale’s and Bluemercury stores. It has begun upgrading 350 stores, with early results showing a 1.9% increase in same-store sales.
The retailer has faced challenges
Macy’s reported net sales of $4.7 billion in its third-quarter earnings, a 2.4% decrease compared to the same period in 2023. The retailer has faced challenges with sluggish demand for cold-weather items due to warm weather.
An internal investigation
An internal investigation revealed that one employee concealed $151 million in delivery expenses over nearly three years. The company postponed its full earnings report due to the issue.
Not to steal the money
Chairman and CEO Tony Spring said, “The intention of the employee was to cover up the mistake and not to steal the money.”
Macy's adjusted earnings
Despite setbacks, Macy’s adjusted earnings for the three-month period ending November 2, 2024, were $28 million, or 10 cents per share, slightly beating analyst projections.
Bloomingdale’s and Bluemercury
Spring said, “We are encouraged by the consistent sales growth in our Macy’s First 50 locations and the strong performance of Bloomingdale’s and Bluemercury.”
It raised its sales forecast
Looking ahead, Macy’s expects earnings per share to be between $2.25 and $2.50 for the year, down from previous estimates. However, it raised its sales forecast to between $22.3 billion and $22.5 billion.