Macy’s will close more stores than earlier expected during this fiscal year under the company’s revitalization program as the retail chain struggles with falling revenues.
“We now expect to close about 65 locations this year, up from our prior expectation of 55 and 50 at the beginning of the year,” Adrian Mitchell, CFO at the company, said during the company’s Q3 earnings call on Dec. 11. The closures are set to “occur post-holiday,” said CEO Tony Spring. Store closures are part of the company’s “A Bold New Chapter” initiative announced in February that aims to return the company to growth.
The plan involved shuttering roughly 150 unproductive stores through 2026, including around 50 by the end of the fiscal year (the Saturday closest to Jan. 31).
Since the second quarter of 2022, the company’s revenues have registered a year-over-year decline every single quarter.
In the most recent Q3, 2024, period, total revenues were at $4.9 billion, down from $5.03 billion a year back. Net income fell from $41 to $28 million during this period.
As of Nov. 2, Macy’s operated 459 stores under the brand name and also ran 32 Bloomingdale’s outlets.
When “A Bold New Chapter” was announced, Macy’s said that the plan would enable the company “to successfully drive sustainable, profitable growth, and create shareholder value.”
Macy’s shares tumbled after the earnings release but has since mostly recovered. The stock is down over 15 percent year-to-date as of the close of the market on Dec. 13.
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