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Tag: Macy's Inc.

  • Macy’s rejects $5.8 billion takeover bid; Arkhouse threatens to go to shareholders

    Macy’s rejects $5.8 billion takeover bid; Arkhouse threatens to go to shareholders

    Macy’s Inc. said Sunday it has rejected an unsolicited bid by Arkhouse Management and Brigade Capital Management to take the department-store chain private in a $5.8 billion deal, citing concerns over financing.

    In a statement, Macy’s
    M,
    -1.67%
    said Arkhouse and Brigade failed to address the board’s concerns over their ability to finance the deal, and found a “lack of compelling value in their non-binding proposal.”

    “Following careful consideration and efforts to gather additional information from Arkhouse and Brigade, the board determined that Arkhouse and Brigade’s proposal is not actionable and that it fails to provide compelling value to Macy’s, Inc. shareholders,” Macy’s Chief Executive Jeff Gennette said in a statement. “We continue to be open to opportunities that are in the best interests of the company and all of our shareholders.”

    Earlier Sunday, Arkhouse confirmed that it and Brigade had submitted a proposal to buy Macy’s for $21 a share on Dec. 1, and threatened to bring the matter directly to Macy’s shareholders if talks do not pick up this week. “We see the potential for a meaningful increase to our original proposal if we are granted access to the necessary due diligence,” Arkhouse added.

    Also read: Macy’s real estate alone is worth nearly $3 billion more than investors’ bid, these analysts say

    Macy’s shares jumped after the buyout bid was first reported in December, but have since lost some of those gains.

    Last week, Macy’s said it will lay off 13% of its corporate staff — roughly 2,350 jobs — and close five stores in an effort to cut costs.

    Macy’s stock is down about 23% over the past 12 months, compared to the S&P 500’s
    SPX
    22% gain.

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  • Macy’s to lay off 13% of corporate staff, close five stores

    Macy’s to lay off 13% of corporate staff, close five stores

    Department-store chain Macy’s Inc. plans to cut 2,350 jobs and close five stores, the Wall Street Journal reported on Thursday, as the company tries to curb expenses and meet the demands of what it said was “an everchanging consumer and marketplace.”

    The cuts, which amount to around 13% of Macy’s
    M,
    +0.39%
    corporate staff and 3.5% of its staff overall, are part of an effort to shed costs, eliminate management layers and redirect spending toward improving customers’ shopping experience, the Journal said. The dismissals will begin on Jan. 26, according to a memo sent to employees cited by the publication.

    “As we prepare to deploy a new strategy to meet the needs of an everchanging consumer and marketplace, we made the difficult decision to reduce our workforce by 3.5% to become a more streamlined company,” a Macy’s spokesperson said in a statement to MarketWatch.

    The spokesperson said that the store closures were part of an effort to “reposition our store portfolio and evaluate the right mix of on- and off-mall locations,” adding that the five stores would close this year.

    Shares of Macy’s were up 0.2% after hours on Thursday, after gaining 0.4% in the day’s trading.

    The Journal reported that Macy’s plans to develop a more automated supply chain and would outsource some jobs. Citing a person familiar with the matter, the publication said the company would be “investing in areas that impact consumers, such as adding more visual-display managers to enhance the look of stores and upgrading digital functions to make online shopping more seamless.”

    The job cuts were announced as the landscape for retailers remains uneven, as higher prices for groceries and other basics have hindered what inflation-hit shoppers can spend elsewhere.

    “Despite our strong and tangible progress over the last few years, we remain under pressure,” according to the Macy’s memo cited by the Journal said.

    The moves come as Macy’s President Tony Spring prepares to succeed the outgoing Jeff Gennette as the company’s chief executive next month. Macy’s is also facing a nearly $6 billion takeover bid by an investor group that’s looking to take the retailer private.

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  • Macy’s sales fall short and company lowers full-year guidance to reflect challenged consumer

    Macy’s sales fall short and company lowers full-year guidance to reflect challenged consumer

    Macy’s Inc.’s stock slid 9% in premarket trading Thursday, after the department-store chain posted weaker-than-expected fiscal first-quarter sales and cut its full-year guidance to reflect a challenged consumer.

    The New York-based company M posted net income of $155 million, or 56 cents a share, for the quarter to April 29, down from $286 million, or 98 cents a share, in the year-earlier period. Adjusted per-share earnings were also 56 cents, ahead of the 45-cent FactSet consensus.

    …

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  • Macy’s stock slides as holiday lulls weigh on sales forecast and execs predict difficulties into 2023

    Macy’s stock slides as holiday lulls weigh on sales forecast and execs predict difficulties into 2023

    Shares of department-store chain Macy’s Inc. slid 8% in after-hours trading on Friday after the retailer gave a more downbeat forecast on its fourth-quarter sales, with management citing big “lulls” in the holiday-shopping season and saying customers would likely feel the squeeze from inflation into next year.

    Executives said they expected those sales to land in the “low-end to mid-point” of prior expectations for between $8.161 billion to $8.401 billion. They said they expected adjusted earnings per share to be within its previously forecast range of $1.47 to $1.67.

    “Black Friday/Cyber Monday sales were in line with our expectations, while the week leading up to and following Christmas were ahead,” Macy’s
    M,
    +2.64%
    Chief Executive Jeff Gennette said in a statement. “However, the lulls of the non-peak holiday weeks were deeper than anticipated.”

    “Based on current macro-economic indicators and our proprietary credit card data,” he continued, “we believe the consumer will continue to be pressured in 2023, particularly in the first half, and have planned inventory mix and depth of initial buys accordingly.”

    Macy’s issued the sales and profit figures as Wall Street parses consumer behavior during the holiday season. Adobe on Thursday said online sales surpassed $210 billion and beat expectations. Costco Wholesale Corp., a day earlier, reported an increase in December sales, even though online sales fell.

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