Macy’s Unveils $100 Million Cost-Cutting Plan Following Mixed Q4 Results

Macy’s is asserting that it will continue to build on its recent string of investments to reshape its business in 2019, but the department store will have to do so by cutting $100 million in annual costs. Under a new restructuring plan, Macy’s is reorganizing its upper management team, cutting 100 VP-level or above roles within the company.

Overall, the retailer saw mixed results for Q4 2018, one month after revealing that its November-to-December same-store sales only increased 1.1%. In the complete holiday quarter, the retailer saw:

  • Adjusted earnings per share of $2.73 on net income of $740 million, higher than expectations of $2.53 per share;
  • Same-store sales growth of 0.7%, short of 0.9% expectations; and
  • Full-year same-store sales growth of 2.0%.

In 2019, Macy’s anticipates overall same-store sales will range between flat and 1%, with net sales expected to be flat. Earnings are expected to fall between $3.05 and $3.25 a share, largely due to the company’s continued investments across channels.

Building on last year’s “Growth 50” plan, which…