Macy's Brooklyn Sale Gives Earnings Boost Despite Negative Outlook
Macy's announced this week that it will cut thousands of jobs as it slashed its profit outlook after disappointing holiday sales, which saw a 4.7% decline in November and December year-over-year, reports RTT News. Earnings per share for 2015 now are expected to range from $3.85 to $3.90, compared with previous guidance ranging from $4.20 to $4.30. However, the earning guidance for 2015 included an expected $250M gain for Macy's due to the sale of its Downtown Brooklyn real estate.
The retailer plans to cut expenses by $400M this year by adjusting staff levels, impacting 3,000 associates at both Macy's and Bloomingdale's (50% of those affected employees are expected to be placed in other positions); implementing a buyout for 165 executives; reducing 600 back-office positions; consolidating four credit and customer services centers into three, closing its St. Louis center; and closing 40 of its 770 Macy's stores, with 36 shuttering early this year.
The only New York stores impacted are Upstate and in the Hudson Valley. [RTT]