Macy’s Reports Soft Holiday, Announces Closing Irvine and Sacramento Stores

Retail

As of Thursday, January 7, 2016

Department-store giant Macy’s Inc. reported a soft holiday sales season.

Its same-store sales decreased 4.7 percent during the crucial holiday months of November and December, according to a Jan. 6 announcement. Macy’s operates 900 stores in 45 states under the nameplates of Macy’s and Bloomingdale’s.

Terry J. Lundgren, Macy’s Inc.’s chairman and chief executive officer, blamed an unseasonably warm winter for the retailer’s soft sales performance. “In the November/December period, we were particularly disadvantaged by the historically warm weather in northern climate zones, where both Macy’s and Bloomingdale’s are especially well-represented. About 80 percent of our company’s year-over-year declines in comparable sales can be attributed to shortfalls in cold-weather goods such as coats, sweaters, boots, hats, gloves and scarves,” he said.

Macy’s updated its guidance on Jan. 6. Earnings per diluted share for the full-year 2015 are forecast to be in the range of $3.85 to $3.90. Previous guidance was in the range of $4.20 to $4.30.

Macy’s said it will deal with the poor sales by consolidating its store fleet. It will close 40 Macy’s stores, including 36 that will be closed by early spring 2016. The stores slated for closure include two California locations: the Macy’s at Irvine Spectrum in Irvine, which employs 112 associates, and the Macy’s at Country Club Plaza in Sacramento, which employs 111 associates.