CINCINNATI, OH (WCMH) — Macy’s announced plans this morning to close 100 stores in early 2017.
In a press release Thursday morning, the company said:
“Macy’s will operate fewer stores and concentrate its financial resources and talent on our better-performing locations to elevate their status as preferred shopping destinations. Stores will remain critical customer touchpoints for Macy’s, along with online shopping and mobile apps, as omnichannel retailing continues to evolve.”
The location of the stores that will be closing has not been released, saying the announcement will be made to the employees of the affected stores before a public announcement.
Macy’s has five Central Ohio stores, including two in the Mall at Tuttle Crossing.
Employees displaced by store closings may be offered positions in nearby stores where possible. Eligible full-time and part-time associates who are laid off due to the store closing will be offered severance benefits, according to the company.
Macy’s says that nearly all of the closing stores are profitable today, but have been declining in recent years.
In a number of cases, the real-estate value of the store locations is greater than the value as a store, Macy’s said.
Macy’s Inc.on Thursday reported fiscal second-quarter net income of $11 million.
The Cincinnati-based company said it had profit of 3 cents per share. Earnings, adjusted for one-time gains and costs, came to 54 cents per share.
The results surpassed Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of 40 cents per share.
The department store operator posted revenue of $5.87 billion in the period, also topping Street forecasts. Five analysts surveyed by Zacks expected $5.75 billion.
Macy’s expects full-year earnings in the range of $3.15 to $3.40 per share.
Macy’s shares have dropped roughly 3 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen slightly more than 6 percent. The stock has fallen 50 percent in the last 12 months.