Macy's New Store Openings and High Profit Forecasts Trump Layoffs News - Businessweek: "Layoffs at the department store giant came alongside several coups. Macy’s said same-store sales in the past two months increased by 4.3 percent over the year-earlier period—thoroughly respectable particularly given JC Penney (JCP)‘s decision to not reveal holiday sales numbers. Meanwhile, Macy’s also forecast 2014 profit of $4.40 to $4.50 per share, well ahead of analyst expectations."
“They are a running a good business, and hats off,” Stifel Financial Analyst Richard Jaffe told Bloomberg.
Through that lens, the company’s decision to lay off 2,500 workers and close five stores looks quite different—possibly even rosy. Admittedly, it’s bleak for the soon-to-be-unemployed, but Macy’s said the moves will save $100 million a year. Meanwhile, its total head count will be static at about 175,000 because the company is opening stores elsewhere and hiring in other areas.
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