Macy's Selling Top Half Of State Street Store For $30 Million

Share
Macy's Selling Top Half Of State Street Store For $30 Million

It issued an upbeat outlook.

Macy's and other department stores are trying to regroup as shoppers spend more online and on items other than the clothing on which the chains are very dependent.

For a brick-and-mortar retailer, a key performance metric is same-store sales.

While the Macy's numbers provide some cheer, they don't suggest a "miracle on 34th Street", said Neil Saunders, managing director of GlobalData Retail.

Macy's has inevitably lost market share as it closes stores as part of a massive reduction in its overbuilt footprint, but that is starting to yield some serious cash.

Same store sales at Macy's increased 1.4% in the fourth quarter ended February 3, reversing a string of comp declines.

The company beat EPS and met revenue estimates for 2017 and guided 2018 EPS well above analysts' expectation. J.C. Penney (JCP) was up 1%, erasing big intraday gains.

The company now has an insider ownership of 2.09 Percent and Institutional ownership of 91.9 Percent. The move would allow the chain to make changes without the demands of the public markets.

Gross margin, which measures how much the company makes on each dollar of sales, slipped slightly to 38.2 percent in the fourth quarter from 38.3 percent a year earlier.

The shopping-mall anchor said Tuesday that comparable sales grew 1.4 percent in the most recent quarter while revenue rose 1.8 percent to $8.67 billion.

Merchandise sales, excluding CDI, were $2.03 billion, up 7 percent from $1.90 billion during the same time in during the previous fiscal year.

Unveiled in May of a year ago, the North Star Strategy is a five-pronged plan that encompasses the use of technology to enhance the overall customer experience, securing adequate funding for initiatives and restoring Macy's prior dominance as a trendsetter and fashion-leader.

The company aims to return to strong same-store sales growth this year, Gennette said. Macy's estimates the sale value to be about $50 million.

"Our customers have responded well to the increased focus on fashion and enhanced quality of the merchandise", Jeffrey Gennette, chief executive of Macy's, said in a call with analysts on Tuesday. The company has also been testing new initiatives like mobile checkout, new lighting and fixtures at its Woodbridge, New Jersey store.

To many shoppers, the store has been dying a slow death ever since the Marshall Field's name was removed. Brookfield plans to convert these largely unused floors into office space.

After selling its men's store in San Francisco, Macy's is now exploring options to sell the stand-alone portion of its Union Square location - about 240,000 square - that was previously an I. Magnin store before it was integrated into the current layout.

Analysts polled by Thomson Reuters expected Macy's to report income of $ 2.71 per share on revenue of $ 8.68 billion for the fourth quarter. Though the top line fell short of analyst expectations of $8.68 billion, the bottom line was better than the anticipated earnings of $2.71 per share of Macy's stock. The company reported back in January that comparable sales were up 1 per cent during the November and December holiday rush from a year earlier, foretelling the full quarter's increase. Macy's updated its FY19 guidance to $3.55-3.75 EPS.

Share

Advertisement

Related Posts

Mobile wallets have to comply with February-end KYC deadline, says RBI
Wallet Balance of INR 12,000 crores at Stake? This move will lead to a massive drop in the number of wallet users. Our ultimate fight is with cash and this business is about commerce and not banking, hence KYC is not critical.

Albania hopes to open European Union accession talks following Juncker visit
Mr Rama said: "Seventeen senior judges and prosecutors refused to be vetted, so they are out of the judiciary". Serbia and Montenegro are considered to be the next countries to join the EU.

Patients with varicose veins at greater risk for thrombosis, other vascular diseases
The chief weakness of the study was the database did not provide information on patients who did not seek medical care. Varicose veins develop when tiny valves inside a vein stop working properly, causing pooling of blood in the veins.

Fitbit's (FIT) "Underperform" Rating Reaffirmed at Bank of America
New products were responsible for 36% of fourth-quarter revenue, including the Ionic , Alta HR, Fitbit Aria 2, and Fitbit Flyer. For the twelve months period, FIT disclosed net loss of $ 277.19 million or $ 1.19 per share from the revenue of $ 1.62 billion.

Shares in Williams Companies Inc (NYSE:WMB) Purchased by Ferris Capital LLC
After $1.15 actual EPS reported by CBS Corporation for the previous quarter, Wall Street now forecasts 6.96% EPS growth. With 17,300 avg volume, 18 days are for Surmodics Inc (NASDAQ:SRDX)'s short sellers to cover SRDX's short positions.

Apple shares on verge of record high after Buffett comments
Buffett wants to clarify to shareholders that a new accounting rule may render Berkshire's bottom-line earnings going forward. This year, the letter was about 8,000 words long, vis-à-vis his usual more than 14,000 word letters.

Gov. Carney calls for state ban on assault-style weapons
He said , "I've never taken a dime from the NRA in my 35 years in public service". I think having a conversation with the president can help move that", he said .

Biologist: This Year's Flu Season to be More Damaging Than 2009
Health officials say this year's worse-than-average flu season is finally showing signs of loosening its grip across the U.S. Although the very young and old are at the highest risk for flu, young adults shouldn't skip the vaccine .

Irish Boxer Michael O'Reilly Banned For Four Years
O'Reilly informed the Panel that he meant to appeal the provisional suspension and requested the "B" sample be tested. The supplement in question was revealed to be "Falcon Labs Superdrive Testobooster Tech".

Pfizer (PFE) Given a $40.00 Price Target by Societe Generale Analysts
Maximum and minimum EPS estimate for the current quarter is projected at $0.79 and $0.67, respectively, according to 14 analysts. The Michigan-based Cranbrook Wealth Mngmt Limited Liability has invested 0.07% in Pfizer Inc. (NYSE:PFE) for 160,780 shares.

© 2015 ExpressNewsline. All Rights reserved.