Posted on 01/06/2016 5:13:12 PM PST by doldrumsforgop
Macy's Inc. on Wednesday reported a worse-than-expected holiday quarter and outlined plans to cut $400 million in annual costs by closing stores and cutting thousands of jobs. Shares of Macy's, down 44% over the past year through the close Wednesday, rose 5.1% to $37.98 in after-hours trading.
Macy's, which called its 2015 performance "disappointing," said it expects to cut about 3,000 associate jobs across its stores and implement a "voluntary separation opportunity" for about 165 senior executives. It also will cut 600 back-office jobs and eliminate 750 jobs by consolidating call centers.
Some of the cut employees are expected to be placed in other positions.
"In some cases, there will be short-term pain as we tighten our belt and realign our resources," Chief Executive Terry J. Lundgren said in a news release.
The news comes as Macy's also reported weak sales for its holiday period and cut its guidance for its latest quarter. Macy's said its comparable sales, on an owned and licensed basis, fell 4.7% in November and December.
Macy's said unseasonably warm weather was responsible for most of the decline, dampening demand for cold-weather gear like coats and sweaters. A U.S. strong dollar also continued to weigh on spending from international tourists.
(Excerpt) Read more at news.morningstar.com ...
related article from August 2015
http://www.cnbc.com/2015/08/12/why-we-dropped-trumps-menswear-line-macys-ceo.html
We bought stuff there and they looked busy. Guess there were lots of returns.
Sucks; it will hit here in Cincy for sure.
“Macy’s said unseasonably warm weather was responsible for most of the decline,”
Well, that explains it! (s/) Silly me. And here i thought it’s because of the outdated, dinosaur and stuffy mall culture they espouse.
They announced store closures in downtown Spokane, WA and Moscow, ID today. The downtown Spokane store has been occupied in the same space since 1947, first as the ‘Bon Marche’, then as Macy’s. At the holidays, the store has put up (since the early 50’s) a 5-story tall imitation stained glass portrait of the Madonna and Child and has become a Spokane Christmas tradition.
I can’t think of any business that would want to come in and fill the space. It’s sad.
Used to have a Macy’s nearby. (springfield, OH)
They could save mega $$ by dropping their every-weekend “two day sale” and the commercials showing barnyard-bisquit grinning actors skipping across the screen.
Just lower the prices EVERY day and watch the revenue increase.
I spent $500 there Christmas Eve 2014; nothing since and 0 on Christmas Eve 2015.
They are shutting down three stores near us.
Remember when KMart caved to Michael Moore on guns? Many vowed never to enter the chain’s stores again. It started being a ghost town even before the surge in internet shopping.
I hadn’t been in a Macy’s for years but I do remember they use to have higher quality materials and construction of their clothing lines. I went a while ago and saw their clothes. They were made by the same sweatshop labor that everyone else uses. The quality was terrible.
This was predictable, another casualty of global warming.
All my Christmas shopping was Amazon, 2 other internet sites, and TJ Maxx, the latter of which was ~15%
With corporate America going all-in for both the depraved homo agenda and open-borders amnesty, I’ve made a valiant effort to avoid spending one red dime with any of them. I’ve opted instead for small, local businesses almost exclusively, and correspondingly limited my purchases to products that are more local or small-business in origin as much as humanly possible.
It’s not 100% possible, due to certain items, but I’ll bet I’m now in the 85% to 90% range.
LOL! Trump isn’t associated with those loser deadbeats any more!
Now that Winter is fixing to roll across the nation with a vengeance all the stores are full of swim wear, shorts and tank tops. I've never understood that sales strategy, when it's cold I want gloves and long-handles not a swimsuit.
Lol....last year it was the cold weather.
And the year before it was because of the cold and the year before that it was because of the meteor coming close to Earth, and the year before that .....
Supposedly Penny’s tried that and it didn’t work, because the American consumer is exactly that stupid.
Kind of like the USSR used to blame chronic food shortages on “bad weather”. Every year.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.