shareholders, the department store will save $400 million a year starting in 2010.
This is what the company's CEO told investors during an annual meeting on Friday. Of course, while this information is all well and good, it doesn't negate the dismal results the company posted earlier in the week.
Macy's widened its loss in the first quarter and posted sales at a four-year low.
Terry Lundgren, CEO, president and chairman, continued with some obvious facts: retailers may have hit bottom when it comes to sales decline, but need to start posting growth and dry up inventory supplies.
Investors can only hope this is the end to soft sales, as Macy's saw a 9.5% decline in the quarter to $5.2 billion from $5.75 billion last year, its lowest level since the first quarter of 2005 before the acquisition of May.
The problem is consumers are still not shopping, and the department store sector, in particular Macy's, was on a steady decline way before the recession started.
Lundgren also said outlets could be in the company's future, which some higher-end department store chains like
already have. The company is also working on having a more localized strategic approach -tailoring merchandise to specific markets.
Earlier today, rival
posted a 79% plummet in first-quarter earnings, citing hefty pension expense.
said earnings in its quarter declined 10%, but raised full-year guidance and posted positive sales numbers, while
also saw a 32% decline and boosted full-year guidance.
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