NEW YORK (CBS/AP) — Macy’s says it plans to close about 100 stores next year as the department store operator aims to become more nimble in a competitive market. That represents close to 14 percent of its store base.
The company has not yet announced which stores will be shut down.
The closures come as Macy’s reported Thursday that second-quarter profits and sales fell. The results, however, beat Wall Street estimates as efforts to bring back customers are taking hold.
“Nearly all of the stores to be closed are cash flow positive today, but their volume and profitability in most cases have been declining steadily in recent years,” Macy’s said in a statement. “We recognize that these locations do not yield an adequate return on investment and often do not represent a customer shopping experience that reflects our aspirations for the Macy’s brand.”
The nation’s largest department store chain says that it earned $11 million, or 3 cents per share, in the quarter ended July 30. That compares with $217 million, or 64 cents per share, in the year-ago period.
Excluding charges that are related to store closings, the company earned 51 cents, which is above the 48 cent estimate from FactSet.
Revenue fell 3.9 percent to $5.87 billion. That topped the $5.77 billion estimate from FactSet.
Earlier this year, Macy’s announced the closure of 40 stores, including two in Massachusetts.
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