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…