Why Macy's Stock Is Trading Lower Today

Macy's, Inc. M shares were trading lower Thursday after the company announced 3,900 job cuts.

The restructuring is due to the impact of the COVID-19 pandemic, which resulted in the closure of Macy's stores from March 18 through May 4, the company said in a statement. 

The retailer said it expects the job cuts to generate expense savings of approximately $365 million in fiscal 2020 and about $630 million on an annualized basis. The company is reducing staffing across its store portfolio, supply chain and customer support network and said it will adjust as sales recover.

"COVID-19 has significantly impacted our business. While the re-opening of our stores is going well, we do anticipate a gradual recovery of business, and we are taking action to align our cost base with our anticipated lower sales," CEO Jeff Gennette said in a statement. 

"We know that we will be a smaller company for the foreseeable future, and our cost base will continue to reflect that moving forward. Our lower cost base combined with the approximately $4.5 billion in new financing will also make us a more stable, flexible company." 

Macy's shares were down 5.68% at $6.40 at the time of publication. The stock has a 52-week high of $23.40 and a 52-week low of $4.38.

Related Links:

Macy's Announces Lower Guidance, Will Close 125 Stores

Macy's Trades Higher On Positive Holiday Sales Update

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Newsretailwhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!