Macy's to close 100 stores to become more nimble

Posted at 10:00 AM, Aug 11, 2016
and last updated 2016-08-11 12:09:19-04

NEW YORK — Macy's says it plans to close about 100 stores next year as the department store operator aims to become more nimble in a competitive market. That represents close to 14 percent of its store base.

The closures come as Macy's reported Thursday that second-quarter profits and sales fell. The results, however, beat Wall Street estimates as efforts to bring back customers are taking hold.

The nation's largest department store chain says that it earned $11 million, or 3 cents per share, in the quarter ended July 30. That compares with $217 million, or 64 cents per share, in the year-ago period.

Excluding charges that are related to store closings, the company earned 51 cents, which is above the 48 cent estimate from FactSet.

Revenue fell 3.9 percent to $5.87 billion. That topped the $5.77 billion estimate from FactSet.

It's not yet known where Macy's will close the 100 stores, but decisions will soon be made and the stores will be shuttered by 2017. 

The retail giant says it expects to retain $1 billion in sales from those stores through online sales and nearby stores that will absorb shoppers.