Macy's Massacre: Thousands Fired; Guidance Slashed (Again); Weather Blamed
It was less than two months ago when we brought to you the "Macy's Massacre": on November 11, the stock of the iconic retailer crashed 13% and its CDS soared after Macy's announced a trifecta of weak data, reporting a miss on Q3 sales which came at $5.87 billion below the $6.1 billion expected, down from the $6.2 billion, as well as a plunge in comparable store sales which tumbled by 3.9%, far worse than the expected drop of -0.4%, and nearly three times as bad as the 1.4% drop a year ago.
Cash flow plunged: cash provided by operating activities was $278 million in the first three quarters of 2015, compared with $841 million in the first three quarters of 2014.
Finally, M also slashed its full year same store guidance down from flat to -1.8% to -2.2% with sales projected to drop -2.7% to -3.1%, compared to a previous guidance of -1%, as contrary to the propaganda, the discretionary spending of the US consumer is bad and getting worse by the day.
Fast forward to today when the massacre is back with a vengeance, after the company not only reported yet another cut in its guidance, but also announced it would be laying off another boatload of retailers, demonstrating just how strong the "service" economy truly is.
First, Macy’s said that its comparable sales on an owned plus licensed basis declined by 4.7% percent in the months of November and December 2015 combined, compared with the same period last year. This compares to previous, already poor guidance, of -2% to -3%. The weather was, of course, blamed.
“The holiday selling season was challenging, as experienced throughout 2015 by much of the retailing industry. In the November/December period, we were particularly disadvantaged by the historically warm weather in northern climate zones where both Macy’s and Bloomingdale’s are especially well-represented. About 80 percent of our company’s year-over-year declines in comparable sales can be attributed to shortfalls in cold-weather goods such as coats, sweaters, boots, hats, gloves and scarves. We also continued to feel the impact of lower spending by international tourists as the value of the dollar remained strong,” said Terry J. Lundgren, Macy’s, Inc. chairman and chief executive officer.
Compare this to Macy's 8-K from precisely two years ago, and try not to laugh too hard:
"poor January sales were due to the unusually harsh winter weather across much of the country. Once warm spring weather arrives and our full assortment of fresh spring merchandise is in place, we believe customers will return to a more normalized pattern of shopping."
So much for the comedy, now back to the tragedy for shareholders, as the company admits not even "harsh cold weather" can save it as it slashes earnings guidance...
Macy’s, Inc. is not expecting a major change in sales trend in January and expects a comparable sales decline on an owned plus licensed basis in the fourth quarter of 2015 to approximate the 4.7 percent decline in November/December (from previous guidance of down between 2 percent and 3 percent for the fourth quarter). This calculates to guidance for comparable sales on an owned plus licensed basis in the full-year 2015 to decline by approximately 2.7 percent (from previous guidance of down 1.8 percent to 2.2 percent).
Earnings per diluted share for the full-year 2015 now are expected in the range of $3.85 to $3.90, excluding expenses related to cost efficiencies announced today and asset impairment charges associated primarily with spring 2016 store closings. This compares with previous guidance in the range of $4.20 to $4.30. Updated annual guidance calculates to guidance for fourth quarter earnings of $2.18 to $2.23 per diluted share, excluding charges associated with cost efficiencies and store closings. This compares with previous guidance for earnings per diluted share of $2.54 to $2.64 in the fourth quarter. Earnings guidance for 2015 includes an expected $250 million gain on the sale of real estate in downtown Brooklyn.
... and a tragedy for its employees, many of whom are about to be fired.
Macy’s, Inc. today announced a series of cost-efficiency and process improvement measures to be implemented beginning in early 2016 that will reduce SG&A expense by approximately $400 million while still investing in growth strategies, particularly in omnichannel capabilities at Macy’s and Bloomingdale’s. The actions represent progress toward the company’s previously stated goal of re-attaining over time an EBITDA rate as a percent of sales of 14 percent.
To address the need for greater efficiency and productivity, among the changes being implemented by Macy’s, Inc. in early 2016 are:
- Adjusting staffing levels at each Macy’s and Bloomingdale’s store in line with current sales volume to increase productivity and improve efficiency. An average of three to four positions will be affected in each of Macy’s and Bloomingdale’s approximately 770 going-forward stores (out of an average workforce of approximately 150 associates in each store), for a total of about 3,000 affected associates nationwide. Roughly 50 percent of affected store associates are expected to be placed in other positions.
- Implementing a voluntary separation opportunity for about 165 senior executives in Macy’s and Bloomingdale’s central stores, office and support functions who meet certain age and service requirements and chose to leave the company beginning in spring 2016. Approximately 35 percent of these executive positions will not be replaced.
- Reducing an additional 600 positions in back-office organizations by eliminating tasks, simplifying processes and combining positions, with about 150 of these associates reassigned to other positions.
Luckily, the US service economy is so very strong as Macy's results confirm, or otherwise someone might get the idea that the "manufacturing recession is not contained."
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I bought the wife diamond earrings from Macy's online. They went back as soon as we got them. I've seen better looking glass chips. Even the Macy counter twink who did the return confided that he never buys their crappy stuff.
They burned Trump over PC crap. Backlash
I can't imagine a Thanksgiving without the Macy*s parade. Could it happen?
Ask the Mummers in Philly. They won't be around in a few years either.
Not sure if this story has gone nationwide or not. Not even sure if most people outside Philly know what the Mummers are, but soon it won't matter. The Mummers are, basically, TOAST. Somebody wore an anti-gay T-shirt and all hell has broken loose, politically speaking. Just another 100+ year old tradition that's gonna get shut down in short order by the PC libs.
So if the Mummers can go away, so can Macy's. They'll just slap another corporate name on it the following year. Maybe it'll be the Goldman Sach's Day Parade.
You people whine and complain about "saving" America, but if you're willing to give your tacit approval to disgusting, vile, and even violent reactions against your fellow citizens, then I say fuck America. Let it burn.
You obviously don't give a shit about it, so why should I?
Maybe it's time that straight people are physically and brutally attacked just by virtue of them being heterosexual. Then that shoe may not feel quite as good being on the other foot.
How about this bitch. Fuck you faggot.
You should join ISIS or move to Iran. I think you'd fit in quite nicely there.
Christo-fascists blabbering on about "Sharia law" coming to America, when that's precisely what they want. Birds of a feather, so flock off.
I use the term "Fag" in a way that means no disrespect to gays. I have nothing against gays. But I do have a problem with you (not for being gay). I am not a bigot. But you are still a fag in the sense of being a loser.
No no no. By no means are you a bigot. Your word is gold.
"I use the term "Fag" in a way that means no disrespect to gays."
Your stupidity shines through.
fag
Homos happen but is ABNORMAL. Doesnt mean you should be hated but get out of my face with your lifestyke and being so damn loud about it. It ain't normal.
Homos happen but is ABNORMAL. Doesnt mean you should be hated but get out of my face with your lifestyke and being so damn loud about it. It ain't normal.
Wrong. YallQuaeda are implementing strict Shiniah law. Get it straightt.
Oh here we go with the Yallquadea bullshit. You are pathetic, that is not what anyone is trying to do and you know it, unless you are a fucktard, which I suspect you are. You can already marry another man here. I think South Park covers the PC topic better than I can.
Actually I found it funny......
You take yourrself too seriously.
Asshole.
I am so sick of the PC crowd trying to dominate with their pathetic cry's of that's racist, that's not PC. It really shows a lack of intellect or knowledge when you have to resort the the powers that be sanctioned speech. I hope you love that box they put you in. You deserve it.
Get back on your meds.
get a room and some lube, the three of youz
Somebody is off their meds.
Given that 60 to 70% of all Americans are on a prescription drug of some sort, odds are 2 out of the 3 of them are off their meds.
The only question that needs to be asked is which two?
Maybe that's what being on their meds does for them.
LOL join ISIS? HAHA - you do realize that by being an American citizen you are already an ISIS member by default? Or do you believe that it was a spontaneous group that just happened on some US tanks and stole them and had free reignin the middle east, Man you are dense.
Being physically attacked is a crime, period. But the use offensive lanuage just makes you an asshole. And in America, you are free to be an asshole. I myself prefer assholes to talk freely, I know they are assholes. I don't hafta guess and socialize accordingly. See, thats freedom, I choose not to socialize with people I consider assholes. Now in the PC world, the asshole has to lie and smile and I am forced in to guessing about peoples character again. No thanks. Scream your opinions and if nobody talks to you, you might be an asshole. Adjust accordingly.
Now your turnabout argument is funny, didn't we just start to get a hold on the violence against gays and you want to start beating heteros. Now won't that just go back to homos being killed and beat ramapantly. As the group is only 4-6% of the population, the attrition rate is not on the homo-side. If we want to talk gloves off no law anymore.
I'm living in a town that I haven't lived in before. Being new I didn't know many people here and ended up making friends with a gay dude who is also Indian. I say Indian because that's what he calls it. He is brilliant, talented and hysterically hilarious.
I call him fag from time to time and he laughs and finds whatever embarrassing weakness I have and gives me a hard time about it. We have a blast together. We went out a few weekends ago and went to an art gallery party and then hung out divey bar and just laughed our asses off the entire night, we always do. Everybody loves him, even straight guys.
I wonder if people hear me call him fag and think I am a worthless bigot. I wonder where HBO comedy would be if people couldn't laugh about our differences. I would defend anyone under physical attack from a psycho and would attempt to out-clown anybody that was picking on somebody with the intent of actually being cruel. I never really see that much though. I hear that I should be angry about it on the news but I have almost never seen it in my own life.
That is more a part of peoples private lives and opinions. We probably should watch that we don't hate each other just because of the language we use. Not everybody that uses the term fag is trying to damage people. And maybe this anger we have towards bigots is just as dangerous as bigotry itself.
By the way, this Indian can drink all night and never even appear drunk. There goes that stereotype. It does happen that Natives can get drunk alarmingly quickly but not this one, not at all.
The PC crowd just seems incapable of understanding that they only have their opinions because people can scream nigger and fag or anything else they consider offensive. Otherwise you would have the .gov opinion as it would be the only opinion. Freedom of speech is a double edged sword, not only does it free the ideas you like, it frees the ideas you hate. If it didn't, it wouldn't be free speech.
sounds like your life's ambition is to be a female in Germany. when you get there tell the Muslim boys you would like a two holer. let them know you are better than any 72 virgins. why should they blow themselves up when you can blow them all night long.
Ah shit
After SHTF and things calm down we can have our offensive parties again. Go luck to you, we will need it.
philly - shithole of the US, I fucking hate everything about that city and I cringe whenever I have to go there.
fuck the mummers too, and their kazoos
gayest shit ever,
Barry's illegals not buying so much...
The end of white people has it's consequences apparently...
you mean there hasn't been a surge in Nigga Clubs, for your favorite golfer.
yes but here they're called ax handles.
OT, but who cares.
I was in Autozone, getting an oil and filter for the wife's car. It takes 0w20. Wtf, that must be like water. Anyhow, it's synthetic and pricey.
I'm scanning the options, and notice a house brand, at half price. An employee had sidled up, and was putting some stock away.
I said " so how's this brand of .... W. T. F???! " It's a dude. Not a pretty fella either. Hair in a bun. Clip on earrings. A red dress. White hose and short heels.
I.....did not miss a beat. ..." brand of oil on quality?" Not bad, we sell a lot.
I bet, great price. There are only 4, I need 5. Well I go try to find some. He/she/ it came back in a minute with my oil, and I thanked, eh...er...I thanked.
Almost fucked up....and said " thanks bud" .
Well, times they are a changin'.
Sounds like that 40% out-of-wedlock birthrate, general absense of fathers, and widespread porn is working as intended.
How about a Chicago without a Sears Tower?
haven't they already renamed it Eddie Lam-putz Tower?
Larry Pull It Silverstein workin on that.
how about a White House without a President. We've had one for 8 years now.
its called Capitalism's occam razor; it only applies to the salaried, never to the stock holders in terms of smaller dividends or cap gains.
Sometimes the gravy train ends when the salaried is ALSO the consumer.
Apparently the Oligarchs forget that SIMPLE fact.
They could close them all and I wouldn't notice.
"associates"
"but, but, but...."
no buts mother fuckers.
welcome to the Greatest Depression.
Lets call it the "Obama Depression"
My family started boycotting Macy's last summer when they dumped Trump in favor of illegal immigration. It was disgusting.
So I am glad to see this politically correct company crash !
I am not a trump supporter but they should have never taken that stance.
Mrs. Rainman , a professional shopper, says Macy's is turning "KMartish " ...whatever that means.
My wife and I went out the day after Christmas to grab all of the Christmas Crap at 50% to 75% off for next year, we went to Kmart/Sears and man o man has that place gone down hill. Shelves and shelves of pegs with NO stock. It looks horrible. And then...are you ready for this? If you sign up for their Credit Card you get an extra 50% OFF of your entire purchase. I had to do it. We walked out with 2 carts full of lights, X-Mas Wrap, etc....all marked down up to 75% Off and then take another 50% Off. I don't give a shit....I have an 800+ Credit score...and will cancel it as soon as I get it in the mail. I do this shit all the time....You put it out there...I'll bite...for a moment. (NOTE: Never carry a balance) P.S. Kohl's same thing. Extra 30% Off, 20% in Kohls cash, 10% in rewards Credits, and then when you get to the register, you only have to put $1 on your kohls card, and the rest goes on my Capital one card for the extra 2% Cash back. And this is all the while shopping on the 50-80% off racks. You guys do this?
Went there specifically to get the frango mints. They don't stock them any more, you have to go online. And they don't survive shipping -- so no go.
They lose sales by not having what people actually want. Fire management not the associates.
That's awesome. My family doesn't do presents anymore unless it's for kids. When we did I always did my Christmas shopping right after Christmas or late January when the good deals are out. I never thought about using cards like that though, that's smart. I am overly paranoid about debt, I only feel secure when I have none which will screw up your credit if you do it too long.
"K-Martish" ? Why, that's a classy Walmart.