U.S. department store chain Macy’s (M) is closing 150 stores as its financial results continue to deteriorate.
News of the store closures comes as the company reports that its sales fell nearly 2% during the fourth quarter of 2023.
The 166-year-old department store chain reported earnings per share of $2.45 U.S. versus $1.96 U.S. that was expected.
Revenue in the period totaled $8.12 billion U.S. compared to $8.15 billion U.S. that was forecast on Wall Street.
Looking ahead, Macy’s said that it expects sales to remain stagnant this year, projecting sales of $22.20 billion U.S. to $22.90 billion U.S. for 2024.
The latest guidance is below an earlier forecast of $23.09 billion U.S. in sales issued by the company.
The store closures are being positioned as part of a turnaround strategy at Macy’s under new chief executive officer (CEO) Tony Spring, who took the helm of the company earlier in February.
In recent months, Macy’s has announced staff layoffs and has entertained sales offers for its vast real estate holdings.
The stock of Macy’s is down 2% on news of the company’s latest earnings. Before today (Feb. 27), the share price had fallen 5% over the last 12 months to trade at $19.30 U.S. per share.
