Macy's

[Money & Finance]

Via AP

Do bosses...

• Report four consecutive quarters of sales growth at existing locations?
• Boost earnings guidance for the year?
• Invest more than $200 million renovating a specific set of stores (called "magnets") with new technology and more varied merchandise?
• Expect to hit $1 billion in mobile sales this year?

Apparently. But we're also guessing a 7.2% drop in share price isn't part of the job description.

So why did investors knock Macy's yesterday? Because everything's relative.

• Bloomberg's Sarah Halzack points out investors have set a high bar for retailers given a high-flying economy and strong consumer sentiment.
• Plus, keep in mind financials are often compared year-over-year. Q3 2017 for Macy's was "grisly." The true test will be how it performs during this holiday season.

[Isabella]

Macy’s to close 125 stores, cut 2,000 corporate jobs, in hunt for growth

The department store chain announced Tuesday it plans to shut 125 stores over the next three years and slash about 2,000 corporate jobs, as it closes its Cincinnati headquarters and tech offices in San Francisco.

Macy’s said it plans to exit weaker shopping malls, and instead shift its focus toward opening smaller-format stores in strip centers. Macy’s has shuttered more than 100 stores since 2015.

Still, looking ahead three years from now, even with these changes, growth at Macy’s looks abysmal.

With a smaller base of stores, Macy’s said net sales in fiscal 2022 are expected to be within a range of $23.2 billion to $23.9 billion, while earnings per share, on an adjusted basis, will be between $2.50 and $3.00. Same-store sales, on an owned plus licensed basis, are forecast to be down 1% to flat.

Read more: https://www.msn.com/en-us/money/companies/macys-to-close-125-stores-cut-2000-corporate-jobs-in-hunt-for-growth/ar-BBZEn4C?li=BBnbfcN