According to reports Department-store chain Macy’s Inc. (NYSE:M) stock dropped 13% as it slash profit outlook and revealed plans to cut 10,100 jobs to save $550m.
Macy’s Inc. (NYSE:M) further said that 3,900 jobs would go in 2017 after closing of 68 store, out of a planned 100 revealed last year.
In the meantime, other modifications and reductions in middle management roles will cut down another 6,200 jobs.
All the Department store chains in the US have lately been finding it hard with ever growing pressure from popularity of online retailers and discount stores.
Macy’s (owners of department store Bloomingdales) also announced its profits for the year to 30 January would be less than previously predicted.
The company was predicting profits to fall between $3.15 and $3.40 a share, but has now drop this to $2.95-$3.10.
Meanwhile other US department stores also saw noteworthy share price actions on Thursday.
Another chain Kohl’s stock plunged 19% as it too slashed its profit outlook, while Sears saw its shares surged almost 6% in early trading after it said it would sell its Craftsman tools business to Stanley Black & Decker for $900m.
Nevertheless, Sears also posted weak holiday trading, with same-store sales in November and December dropped by almost 12-13%, and the company also plans to shutter 150 stores.
Furthermore Macy’s reviewed profit outlook followed the chain’s like-for-like sales in November and December saw a drop of 2.1%.
“While our sales trend is consistent with the lower end of our guidance, we had anticipated sales would be stronger,” said Macy’s (M) chief executive, Terry Lundgren.