Macy's Lowers Profit Forecast, Will Cut 2,300 Jobs

[marmar]

from Bloomberg:



Macy's Lowers Profit Forecast, Will Cut 2,300 Jobs (Update3)

By Cotten Timberlake

Feb. 6 (Bloomberg) -- Macy's Inc., the second-biggest U.S. department-store chain, cut its fourth-quarter earnings forecast after a decline in January sales and said it will eliminate 2,300 jobs.

The moves will reduce annual expenses by $100 million starting in 2009 and cost the company $150 million in 2008, Macy's said today in a statement. Sales at stores open more than a year fell 7.1 percent in January, the second straight monthly decline.

Macy's has struggled to boost sales growth since buying May Department Stores Co. in 2005 for $11 billion. Chief Executive Officer Terry Lundgren said the company will consolidate three divisions to help Macy's tailor merchandise to local markets, reducing expenses and boosting revenue.

``The merger has been a struggle,'' said David Heupel, a Minneapolis-based fund manager with Thrivent Financial for Lutherans. ``They need a better way to manage these stores. The moves to consolidate and cut costs are obviously needed and positive.'' Thrivent manages $60 billion in assets, including Macy's shares.

Macy's declined $1.16, or 4.6 percent, to $23.94 at 4:01 p.m. in New York Stock Exchange composite trading. The shares have fallen 31 percent since the purchase of May Department Stores.

The retailer will cut 950 positions at its regional headquarters in Minneapolis, 850 in St. Louis and 750 in Seattle. The company is adding 250 district managers and staff who will operate its stores according to local tastes, the company said. Macy's has about 188,000 employees.

`Not Happy'

``I am not happy with where we are at,'' Lundgren said in an interview. ``But I at least can say that we are getting our share of the business that's out there. We are among the best- performing. It is a difficult retail environment out there, and I expect it will be going forward.'' .....(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=aQzArrDHpxZc&refer=home

[Amerigo Vespucci]

1. "I am not happy with where we are at,'' Lundgren said in an interview...

..."but I still have a job, so there's no use crying over spilled milk."

[cosmicdot]

3. 2006 total salary for Lundgren: $15,647,117

probably will know his 2007 salary in April

not happy where we are at = big bonus (it's the helluva job mission accomplished school of business)

http://www.sec.gov/Archives/edgar/data/794367/000095015207003011/l25202bdef14a.htm#110

[DadOf2LittleAngels]

2. boy am I glad we are a retail service economy...

:(