Macy's, Inc. Announces Unaudited Consolidated Earnings Results for the Thirteen Weeks and Fifty Two Weeks Ended January 1, 2015; Provides Earnings Guidance for the Year 2015; Announces Asset Impairment Charges for the Thirteen Weeks Ended January 31, 2015
Feb 24 15
Macy's, Inc. announced unaudited consolidated earnings results for the thirteen weeks and fifty two weeks ended January 1, 2015. For the 13 weeks ended January 31, 2015, the company reported net sales of $9,364 million against $9,202 million a year ago. Operating income was $1,364 million against $1,349 million a year ago. Income before income taxes was $1,250 million against $1,250 million a year ago. Net income was $793 million or $2.26 per diluted share against $811 million or $2.16 per diluted share a year ago. Earnings, adjusted for asset impairment costs, were $2.44 per share.
For the 52 weeks ended January 31, 2015, the company reported net sales of $28,105 million against $27,931 million a year ago. Operating income was $2,800 million against $2,678 million a year ago. Income before income taxes was $2,390 million against $2,290 million a year ago. Net income was $1,526 million or $4.22 per diluted share against $1,486 million or $3.86 per diluted share a year ago. Net cash provided by operating activities was $2,709 million against $2,549 million a year ago. Purchase of property and equipment was $770 million against $607 million a year ago. Adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) rose in 2014 to $3.923 billion, or 14% of sales.
For the 13 weeks ended January 31, 2015, includes $33 million of asset impairment charges primarily related to the store closings announced in January 2015.
For the year 2015, the company expects comparable sales growth on an owned plus licensed basis, as well as on an owned basis, of approximately 2%. Total sales are expected to grow about 1%. Earnings of $4.70 to $4.80 per share are expected in 2015. Capital expenditures are expected to be approximately $1.2 billion, an increase from $1.07 billion in 2014, reflecting new investment in growth initiatives. Tax rate is expected to be approximately 37%. Depreciation and amortization is expected to be approximately $1,060,000,000.
Macy's Inc. Announces Plans to Restructure its Merchandising and Marketing Operations; Plans to Open New Stores in 2015; to Close 14 Macy's Stores in Early Spring 2015
Feb 9 15
Macy's Inc. has announced plans to restructure its merchandising and marketing operations. With changes being announced, Macy's, Inc. will be increasing its workforce in some functions and locations while decreasing in others so all of the company's resources can be deployed for maximum results. In total, the Macy's, Inc. workforce is expected to remain at a level of approximately 175,000 associates. Both Macy's and Bloomingdale's are restructuring their respective central merchandising and marketing functions so each brand can develop and present its assortments seamlessly across channels and provide a single omnichannel view in all product categories. Simultaneously, Macy's will make selected changes to its merchandising-related functions in local districts (administrative grouping of Macy's stores) around the country as it continues to improve its ability to localize assortments by size, color, fabric weight, style, fit, category and brand. The company will discontinue district planner positions and reinvest in new regional teams devoted to specific themes of merchandise localization. These changes in merchandising and marketing are expected to affect approximately 115 associates in Macy's and Bloomingdale's central offices in New York City, as well as about 150 associates in local markets nationwide. Selling service and support is being modified to match business opportunity in each department. An average of two to three associates will be affected in each of Macy's and Bloomingdale's approximately 830 stores (out of an average workforce of approximately 150 associates in each store), for a total of about 2,200 affected associates nationwide. The company is working to place as many affected associates as possible in other open positions. Also, two existing Macy's stores districts are being merged into nearby districts thus reducing the ongoing number of stores districts to 58 from the current 60.
In 2015, Macy's is expected to grow its San Francisco-based digital technology organization by hiring more than 150 people. Advancements in business systems and information technology, including security infrastructure, to deliver the information and functionality required to support a growing Omnichannel business. Increasing direct-to-consumer fulfillment capacity in every full-line Macy's and Bloomingdale's store and at the five existing dedicated fulfillment centers located in Arizona, California, Connecticut, Tennessee and West Virginia. In addition, as many as 1,500 new year-round and seasonal associates will be hired this year at a new 1.3 million-square-foot direct-to-consumer fulfillment center now being built in Tulsa County, OK. Initial operations at the Tulsa facility are expected to begin in April 2015, with a total workforce of more than 2,500 associates (1,500 year-round associates and more than 1,000 holiday seasonal associates) expected in future years as the fulfillment center reaches full capacity. Opening new Macy's, Bloomingdale's and Bloomingdale's Outlet stores as opportunities arise in new and existing markets. New stores to be opened in fall 2015, as previously announced, include a Macy's in Ponce, PR, which will employ about 275 associates, as well as a new Bloomingdale's in Honolulu, with an expected workforce of 250 associates. The company also detailed a series of adjustments to its portfolio of stores across the country. The company announced two new stores: A three-story Bloomingdale's of 150,000 square feet will be added in an expansion of Westfield Valley Fair Shopping Center in San Jose, CA. The all-new Bloomingdale's store is expected to open in fall 2017 and employ an estimated 250 associates. Westfield Valley Fair's current anchors include a Macy's women's store, a Macy's men's/home store and a Nordstrom. This will be Bloomingdale's third store in northern California, joining Westfield San Francisco Centre in downtown San Francisco and Stanford Shopping Center in Palo Alto. Macy's will build a new 155,000-square-foot store on two levels to replace its existing 136,000-square-foot Westfield Century City location in Los Angeles, CA. The existing Macy's will be closed in January 2016 and razed to accommodate new development in the mall. The all-new Macy's, expected to open in November 2016, will be built in a highly visible location along Santa Monica Boulevard. Westfield Century City also includes an existing Bloomingdale's store which will be completely remodeled in 2016 and connected to new development in the mall. Seven other new Macy's and Bloomingdale's stores are currently planned and/or under construction, as previously announced. New Macy's stores will be opening in: Plaza Del Caribe, Ponce, PR (150,000 square feet; to open in fall 2015); Ka Makana Ali'i, Kapolei, HI (103,000 square feet; to open in fall 2016; approximately 180 associates); and Mall at Miami Worldcenter, Miami, FL (195,000 square feet; to open in fall 2017; approximately 150 associates). New Bloomingdale's stores will be opening in: Ala Moana, Honolulu, HI (167,000 square feet; to open in fall 2015; approximately 250 associates); and Mall at Miami Worldcenter, Miami, FL (120,000 square feet; to open in fall 2017; approximately 225 associates). In addition, new Macy's and Bloomingdale's stores are planned to open in Al Maryah Central in Abu Dhabi, United Arab Emirates, in 2018 under license agreements with Al Tayer Group.
The company also announced that it will close the following 14 Macy's stores (out of a current total of about 790 Macy's stores) in early spring 2015. Final clearance sales will begin on Jan. 12 and run for between eight to 12 weeks. The list of stores that are closing include: Metro Center, Phoenix, AZ; Cupertino Square Mall, Cupertino, CA; Promenade (main store), Woodland Hills, CA; Promenade (furniture gallery), Woodland Hills, CA; Gulf View Square, Port Richey, FL; Northland Center, Southfield, MI; and Wendover, Greensboro, NC; additional list of stores that are closing include: Ledgewood Mall, Ledgewood, NJ; ShoppingTown Mall, DeWitt, NY; Rotterdam Square, Schenectady, NY; Kingsdale Shopping Center, Columbus, OH; Richmond Town Square, Richmond Heights, OH; Upper Valley Mall, Springfield, OH; and Southland Mall, Memphis, TN. The company is committed to treating associates affected by store closings with respect and openness. Associates displaced by store closings may be offered positions in nearby stores where possible. Eligible full-time and part-time associates who are laid off due to the store closing will be offered severance benefits. Once all of these changes have been implemented, Macy's, Inc. will operate about 830 stores in 45 states, the District of Columbia, Puerto Rico and Guam.