Macy shares up 16% as investors embrace plan to shut 100 stores

Shares of Macy's surged on Thursday as investors embraced a plan to close 100 stores in the US and boost investment in e-commerce.
In late-morning trade, Macy`s was up 16.1 percent at $39.48.
The outlets that will be shuttered account for about 14 percent of Macy`s 728 stores and about $1 billion in annual revenue. The move comes as conventional retailers struggle to remake themselves in response to the growth of Amazon and other online stores that have grabbed market share.
"We operate in a fast-changing world, and our company is moving forward decisively to build further on Macy`s heritage as a preferred shopping destination for fashion, quality, value and convenience," said Macy`s chief executive Terry Lundgren.
"This involves doing things differently and making tough decisions as we position ourselves to serve customers who have high expectations of their favorite stores, online sites and apps."
Macy`s said the stores that will be shut have seen profits erode in recent years. Most of the closures are expected in early 2017.
The company plans to boost investment in remaining stores and upgrade its mobile applications to allow easier search, faster page loading and simpler procedures for placing orders.
Macy`s reported second-quarter earnings of just $11 million, down from $217 million in the year-ago period, largely due to a $255 million charge related to store closures.
Revenue fell 3.9 percent to $5.9 billion.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES

SIP Calculation at 12% Annualised Return: Rs 10,000 monthly SIP for 20 years, Rs 15,000 for 15 or Rs 20,000 for 10, which do you think works best?

FD Rates for Rs 10 lakh investment: Compare SBI, PNB, HDFC, ICICI, and Post Office 5-year fixed deposit returns

LIC Saral Pension Plan: How much should you invest one time to get Rs 64,000 annual pension for life?

SIP Calculation at 12% Annualised Return: Rs 1,000 monthly SIP for 20 years, Rs 4,000 for 5 years or Rs 10,000 for 2 years, which do you think works best?

UPS vs NPS vs OPS: Last-drawn basic salary Rs 90,000 and pensionable service 27 years? What can be your monthly pension in each scheme?

Monthly Pension Calculations: Is your basic pension Rs 26,000, Rs 38,000, or Rs 47,000? Know what can be your total pension as per latest DR rates
10:49 PM IST