Business | Economy
Macy's cuts profit forecast, plans to close 11 stores as sales decline
Macy's Inc, the second-largest US department store company, cut its annual profit forecast and said it's closing 11 stores as sales decline.
- Bloomberg
- Published: 23:38 January 8, 2009
New York: Macy's Inc, the second-largest US department store company, cut its annual profit forecast and said it's closing 11 stores as sales decline.
Profit for the year will be as little as $1.10(Dh4.04) a share, compared with an earlier minimum projection of $1.30, the Cincinnati-based company said in a statement today.
It said sales at stores open at least a year will fall 7.5 per cent in the fourth quarter, down from an earlier prediction of as much as 6 per cent.
Macy's is among retailers struggling with declining sales as consumers cut back on spending during the US recession. Job cuts, sinking home values and tighter credit have discouraged shoppers from buying the kinds of goods that department stores sell, including handbags, jewelry and women's apparel.
Macy's said it was closing two stores each in Colorado and Pennsylvania, and one each in California, Florida, Hawaii, Indiana, Minnesota, Missouri, and Tennessee.
The locations employ a total of 960. The closures will reduce its store count to 848, the company said.Macy's trails Sears Holdings Corp in annual sales.
Planned Store Closings: Ernst & Young Plaza, Los Angeles, The Citadel, Colorado Springs; Westminster Mall, Westminster, CO; Palm Beach Mall, West Palm Beach, FL; Mauna Lani Bay Hotel, Island of Hawaii, HI Lafayette Square, Indianapolis, IN; Brookdale Centre, Brooklyn Centre, MN; - Crestwood Mall, St. Louis, MO; Natrona Heights Plaza, Natrona Heights, PA; Century III Furniture and Clearance, West Mifflin, PA.
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