Macy's to close stores, lay off 2.5K; up 5% AH

Macy's (M) is up 5% after-hours after guiding to FY15 EPS of $4.40-$4.50 vs. consensus of $4.36, and announcing a number of store closings and 2.5K layoffs. The cost savings are expected to be $100M per year, beginning this year.

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Comments (7)
  • psychological-dividends
    , contributor
    Comments (819) | Send Message
    Here's an idea: stop paying Martha Stewart for her junky products.
    8 Jan 2014, 04:26 PM Reply Like
  • quabbin
    , contributor
    Comments (127) | Send Message
    I think we need to consult bbro on this one.
    I'm sure it's read this but that ADP read is confusing hell out of it.
    8 Jan 2014, 05:17 PM Reply Like
  • bbro
    , contributor
    Comments (11240) | Send Message
    Macys has around 800 stores...175,000 employees,,,I'll let you figure it out if the world is collapsing....
    8 Jan 2014, 05:50 PM Reply Like
  • KennyKid
    , contributor
    Comments (4) | Send Message
    Interesting, I thought Macy's was the one retailer from the last quarterly reporting period everyone celebrated and pointed to as "hitting it out of the park." Why then would you need to layoff? I guess the growth has that was quick.
    8 Jan 2014, 07:57 PM Reply Like
  • The_Batman
    , contributor
    Comments (50) | Send Message
    Well I would say we care more about growth in the company's return on invested capital than growth in revenue, especially for a well established retailer. Closing stores when you have too many drives up returns and as an investor I applaud the move. As a person, I regret the loss in presumably well paying middle class jobs. This action tells us nothing about growth prospects.
    8 Jan 2014, 10:06 PM Reply Like
  • Elephant Analytics
    , contributor
    Comments (1499) | Send Message
    It appears that Macy's is closing 5 stores and opening 8 stores, so they are ending up with more stores than before.
    9 Jan 2014, 12:11 AM Reply Like
  • southfl
    , contributor
    Comments (80) | Send Message
    The retail real estate landscape is changing and any good retailer will prune its store base, closing stores in declining malls and opening stores in new growth shopping areas. Once a mall begins to decline smart retailers will cut and close before the stores become unprofitable. Closing 5 stores in an 800 store chain is simple housekeeping and prudent management.
    9 Jan 2014, 07:32 AM Reply Like
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