Macy's Sees 4Q Charges Related To Store Openings, Closings
First Published Wednesday, 4th January 2012 10:08 pm - © 2012 Dow Jones
Dow Jones NEWSWIRES
Macy's Inc. (M) said its expects to post fourth-quarter charges of $25 million to $30 million for expenses related to a series of store openings and closings, part of its continuing steps to focus on locations with growth opportunities.
The department-store operator said the costs weren't included in its guidance in November.
The company plans to close five Macy's stores during the spring. As previously announced, five new stores and a replacement store are planned or under construction.
Macy's also plans to close four Bloomingdale's locations this spring, while planning to open one new store and a replacement store. An additional new store plan is slated in California for spring of 2014, pending approvals. The company also plans to open five new Bloomingdale's Outlet stores this year.
Macy's in November posted strong third-quarter earnings on continued momentum from its efforts to tailor merchandise to local markets and strength in its credit card unit, but its profit margins narrowed more than Wall Street anticipated and its outlook for the current quarter disappointed.
Shares closed Wednesday at $32.65, down three cents, and were inactive in after-hours trading. The stock is up 30% in the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com