WASHINGTON (dpa-AFX) - Department stores operator Macy's, Inc. (M) said Tuesday that it now expects full year 2014 earnings to be $4.35 to $4.37 per share, compared to its prior guidance of $4.25 to $4.35 per share.
This estimate excludes charges of approximately $100 million to $110 million related to the previously announced merchandising and marketing restructuring, store and field adjustments, store closings and asset impairment charges, as well as approximately $17 million of interest expense related to the make-whole premium for the previously announced early retirement of debt.
Analysts polled by Thomson Reuters expected the company to earn $4.35 per share for the full year 2014. Analysts' estimates typically exclude special items.
Comparable sales growth on an owned plus licensed basis in the fourth quarter of 2014 was 2.5%, in line with the company's guidance of of 2.5% to 3% provided on January 8.
'We are very pleased with our fourth quarter performance, which represents a strengthening trend from the third quarter and spring season,' said Terry Lundgren, chairman and chief executive officer of Macy's.
Macy's is scheduled to report fourth quarter sales and earnings on Feb. 24.
Separately, Macy's, Inc. (NYSE:M) today announced a series of new senior executive appointments as the company continues to deepen its focus on driving profitable sales growth as a leading omnichannel retailer and innovator.
These moves, in conjunction with restructured omnichannel capabilities announced on Jan. 8, 2015, fully align the company's management and organization in key functions - such as merchandising, merchandise planning, marketing and technology - to drive internal growth. Moreover, the company is applying talent and resources to develop new types of growth opportunities.
All changes were effective January 31, 2015.
Jeff Gennette, president of Macy's, Inc., will concentrate more of his time on facilitating broader growth strategies within Macy's existing omnichannel businesses to attract new shoppers to Macy's unparalleled offering of market and private brands, and to strengthen customer relationships, consistent with Macy's single view of the business across stores, online and mobile. Going forward, Gennette will oversee Macy's merchandise planning, as well as maintain oversight responsibility for merchandising and marketing of Macy's stores and digital, and private brand product development. He continues to report to Lundgren. In broadening his purview, Gennette has relinquished his day-to-day responsibilities as Macy's chief merchandising officer.
Timothy Baxter, previously Macy's executive vice president and general merchandise manager for ready-to-wear, has been promoted to succeed Gennette as Macy's Chief Merchandising Officer.
Molly Langenstein, previously executive vice president for men's and kids private brands, has been promoted to Macy's Chief Private Brands Officer, succeeding Tim Adams.
Peter Sachse, Macy's chief stores officer since 2012, has moved to a new role as Macy's Chief for Innovation and Business Development.
Additionally, Macy's said that it has signed an agreement to buy luxury beauty products and spa services retailer Bluemercury, Inc. for $210 million in cash.
The deal is expected to be completed in Macy's' fiscal first quarter, which ends on May 2, 2015, and be accretive to Macy's' earnings in its first full year.
Bluemercury, based in Washington, D.C., currently operates about 60 specialty stores in 18 states, typically in prime street-level locations and urban lifestyle centers, as well as an online business. Products include well-known, high-end luxury beauty brands, as well as M-61, a proprietary skincare brand - all supported with personalized assistance from a team of beauty experts with a high level of technical product knowledge. Most locations include in-house spas.
Bluemercury will continue to be led by Marla and Barry Beck, who co-founded the company in 1999. Its team of approximately 500 associates will remain in their current roles operating a stand-alone Bluemercury specialty business.
Copyright RTT News/dpa-AFX
© 2015 AFX News
