Macy’s Closing More Stores, Updating Holiday Numbers

By Chris Lange Updated Jan 12, 4:50AM EST · Published Jan 4, 11:50AM EST

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Macy’s Closing More Stores, Updating Holiday Numbers — © Wikimedia Commons

Macy’s Inc. (NYSE: M) saw its shares take a step back on Thursday after the company reported numbers from its holiday season, as well as updated guidance for the 2017 full year. Apart from this, the company gave a general business update that included store closures and “staffing adjustments.”

The retailer expects to see annual savings of roughly $300 million from its newly implemented strategy. Macy’s will close 11 stores in early 2018, making a total of 81 closures of its planned 100 announced back in August 2016.

In terms of the 2017 full-year numbers, Macy’s now expects comparable sales on an owned basis to decline in the range of 2.4% to 2.7%, with comparable sales on an owned plus licensed basis to decline between 2.0% and 2.3%. Total sales are expected to be down between 3.6% and 3.9% in fiscal 2017.

Excluding the change in federal tax law, the firm anticipates earnings results for full-year 2017 to be in the upper end of previously disclosed guidance. As a result, the company is raising its full-year 2017 earnings guidance. The company now expects earnings per share (EPS) in the range of $3.59 to $3.69.

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The consensus estimates call for $3.45 in EPS and $24.69 billion in revenue for the 2017 fiscal year. The previous full year reported $3.11 in EPS and $25.78 billion in revenue. Look for these earnings to come out in late February.

Jeff Gennette, Macy’s CEO, commented:

Macy’s had a solid holiday shopping season, and we are pleased that our November/December performance resulted in positive comp sales for the period, setting us up for a positive fourth quarter. Consumers were ready to spend this season, and we delivered with solid execution, fresher inventory, a curated gift assortment and a focus on customer experience. We saw improved sales trends in our stores and continued to see double-digit growth on our digital platforms. Customers also responded well to our new loyalty program. We intend to close the fourth quarter in a good position and head into 2018 with momentum.

Shares of Macy’s were down about 6% at $23.83 early Thursday, with a consensus analyst price target of $24.65 and a 52-week range of $17.41 to $34.37.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.