After detailing a plan to reorganize its operations, Macy’s announced less than happy holiday season results, with comparable sales on an owned-store plus licensed basis declining 2.1% in the 2016 November/December season year over year. Comps at owned locations slipped 2.7%.
In an action the company stated is to streamline its portfolio and extend a real estate strategy initiated last year, Macy’s announced the closure of 68 stores and the reorganization of its field structure.
“While our sales trend is consistent with the lower end of our guidance, we had anticipated sales would be stronger,” said Terry Lundgren, Macy’s, Inc. chairman and CEO. “We believe that our performance during the holiday season reflects the broader challenges facing much of the retail industry. We are pleased with the performance of our digital business, with double-digit gains at both macys.com and bloomingdales.com. However, store sales continued to be impacted by changing customer behavior. Our apparel business, which includes women’s, men’s and children’s, performed well, with particular strength in active and cold-weather merchandise. Sales were also strong in fine jewelry, as well as furniture and bedding, reflecting the success of our initiatives in those categories. However, ongoing weakness in handbags and watches negatively impacted our results.”
