Oh My… Cold Anger Consequences – It appears Macy’s decision to attack Donald Trump in July 2015 has left them in a very compromised position. Macy’s has dropped their 2016 earnings forecast an additional 12%. This is on top of the forecast drop from last November…
(Via LA Times) After a disappointing holiday season, Macy’s Inc. said Wednesday that it planned to cut about 4,800 jobs and close 40 stores as part of efforts to slash costs.
The department store chain, which is closely associated with the holiday season, said comparable sales for November and December 2015 dropped 4.7% compared with the previous year. […] Terry J. Lundgren, Macy’s chief executive, described the holiday season as “challenging.”
[…] On Wednesday, Macy’s, which operates both Bloomingdale’s as well as its namesake chain, said it planned to cut about $400 million in expenses. That includes slashing about 3,000 jobs at stores and 165 executive positions. A call center in St. Louis will be closed. Some of those whose jobs are eliminated will be moved to other positions.
“We believe we can operate more effectively with an organization that is flatter and more agile,” Lundgren said.
The 40 locations that will be closed represent about 5% of Macy’s overall store count.
[…] Macy’s also lowered its earnings guidance for the fourth quarter to $2.18 to $2.23 a share from previous guidance of $2.54 to $2.64 a share. (read more)
