Macy's to close 150 stores in new turnaround effort, forecasts weak 2024 sales

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Macy's to close 150Macy's on Tuesday forecast annual sales and profit below expectations and said it would shutter about 150 stores through 2026 as part of a new plan that would help save $100 million in costs this year.

Its shares rose 7% as the department store chain also beat quarterly profit estimates. They have lagged peers in 2023, declining about 3% compared to a 13% jump in rivals Nordstrom and Kohl's.

The locations made up for less than 10% of Macy's annual sales and were mostly underperforming mall-based stores, CFO Adrian Mitchell told Reuters. No additional layoffs were planned due to the closures.

Sluggish sales have landed the upscale retailer in the crosshairs of activist shareholders and attracted potential bidders, while it also faces a proxy battle from Arkhouse Management after it nominated nine candidates to its board.

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