Macy’s Q2 EPS 3 cents, will close 100 full-line stores
Staff Writer |
Macy’s reported diluted earnings per share of 3 cents in the second quarter of 2016, ended July 30, 2016.
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Excluding asset impairment and other charges primarily related to upcoming store closings and non-cash retirement plan settlement charges of $255 million, or 51 cents per share, second quarter earnings per share were 54 cents per share.
The company’s earnings for the second quarter of 2016 compare with 64 cents per diluted share in the second quarter of 2015.
Macy's earnings per share in the first half of 2016 were 41 cents (94 cents per share excluding asset impairment and other charges primarily related to upcoming store closings and non-cash settlement charges related to the company’s retirement plans), compared with earnings per diluted share of $1.19 in the same period last year.
Macy’s outlined a series of initiatives to drive profitable growth. Macy’s is re-creating its physical store footprint to capitalize on Macy’s unique competitive advantage of operating in the most attractive retailing locations in America.
While still maintaining a significant bricks-and-mortar presence in 49 of the top 50 U.S. markets, 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.
As part of this strategy, the company intends to close approximately 100 Macy’s full-line stores (out of a current portfolio of 728 Macy’s stores, including 675 full-line locations).
Most of these stores will close early in 2017, with the balance closing as leases and certain operating covenants expire or are amended or waived.
Together, annual sales volume of the approximately 100 closed locations, net of sales expected to be retained in nearby stores and online, is expected to be roughly $1 billion.
The reduction in EBITDA is expected to be offset by expense savings beyond those associated with store closings. ■