Updated to include additional brands and stock price.
Amid the shift to online shopping that has made operating a vast portfolio of bricks-and-mortar sites less lucrative, Macy's divulged Thursday it will close 100 stores by early 2017.
Macy's currently operates about 728 stores. The company plans to take the savings from closing its low-volume stores and reinvest them in its top-performing locations. Macy's did not disclose the locations of the stores.
Investors applauded the move by pushing Macy's stock up 17% to close at $39.81 Thursday.
"The way we are looking at this right now is that knowing that you can service your customer on the internet [in major metro areas] you don't necessarily have to be in weak malls," explained Macy's CEO-elect Jeff Gennette in a phone interview with TheStreet.
This wow move by Macy's will have ramifications for apparel and accessories manufacturers as they potentially lose places to sell their offerings.
Here are the companies Macy's decision could hurt the most.
Polo is a major player at Macy's.
Macy's is the top customer for Ralph Lauren's Polo brand, with sales to the department store retailer representing about 11% of annual sales.
While Macy's store closures will likely serve as a near-term hit to Polo's sales, it may not be such a bad thing in the longer term.
Polo's new CEO Stefan Larsson has promised to slash inventory to department stores in a bid to reduce aggressive discounting and prevent the flow of goods to off-price retailers such as TJ Maxx (TJX) - Get Report .
Macy's and Coach have long been besties.
2. Coach (COH)
Undoubtedly Coach executives caught wind of what Macy's was about to announce this week.
On Tuesday, the handbag and accessory maker announced a bold decision of its own to shutter about 25% of its North American department store locations, also known as wholesale locations.
Most of the locations tend to be low volume, according to the company, and the closings will be spread out in terms of geography. Instead, Coach will focus on the best-performing sites and avoid the stores that put its bags on sale or clearance at huge discounts.
Coach products are sold in over 1,000 wholesale locations in the U.S. and Canada. Its most significant U.S. wholesale customers are Macy's (including Bloomingdale's), Dillard's (DDS) - Get Report , Nordstrom (JWN) - Get Report , Lord & Taylor, The Bay,Bon Ton (BONT) , Belk and Von Maur.
Similar to Polo, Coach will likely see a hit to sales as it vacates many Macy's locations (either by choice or because Macy's is closing the store). But, it may not be so bad after all as it will help to clean up the brand's image.
Fossil watches are a staple at Macy's.
One constant in any Macy's store: a jewelry section dominated by watches from Fossil. In addition to its namesake watches, it also sells offerings under license agreements with Burberry, Diesel and DKNY.
It has been a tough go of it lately for Fossil inside of Macy's and rival department stores. The watchmaker reported an 11% plunge in second-quarter sales in its Americas division earlier this week, fueled in large part by tepid demand for watches within department stores such as Macy's and Kohl's (KSS) - Get Report .
"As U.S. department stores' business continues to be soft, the wholesale channel proved to be the largest driver of our [sales] decline during the [second] quarter," Fossil Chairman and CEO Kosta Kartsotis told analysts on a call Tuesday evening.
"We also expect the challenging retail environment to persist. Weaker performance in our wholesale channel, particularly in the U.S., where the business is most challenged, is likely to continue," Kartsotis said.
Nike and Macy's have long co-existed.
Walk into any Macy's store and it's likely the athleticwear section is dominated by Nike.
Nike doesn't disclose much on its department store exposure, but per its most recent annual report says its three largest wholesale customers make up about 25% of its U.S. wholesale sales. It's safe to assume one of those customers is Macy's.
Nike's North America wholesale revenues for the fiscal year ended May 31 rose 4.2% to $10.6 billion, while operating profit for the segment gained 3.2% to $3.8 billion.
Movado will run out of time in some Macy's locations.
Similar to rival Fossil, Movado -- which in addition to selling its namesake watches hawks Coach and Tommy Hilfiger watches under licensing deals -- has a great deal of exposure to Macy's.
Timberland boots are often in Macy's footwear department.
Although VF Corp. may not be hugely reliant on Macy's to sell department store stalwart brands such as Timberland, North Face, Wrangler and Lee, there is likely some decent exposure.
Sales to VF Corp.'s five largest customers amounted to approximately 16% of total revenues in 2015, or about $1.9 billion. Sales to VF's 10 largest customers, all of which are retailers based in the U.S., amounted to 22% of total revenues last year.
The company doesn't specifically disclose the amount of sales it derives from Macy's, but it's reasonable to assume the department store icon is within the top ten customer list.
Calvin Klein is a well-known brand in Macy's stores.
It may be decision time for PVH Corp. in the aftermath of Macy's store closure decision.
The company's acquisition of Tommy Hilfiger in 2010 made it Macy's biggest menswear vendor. PVH subsequently inked an exclusivity deal with Macy's for the Tommy Hilfiger brand's men's, women's and children's wholesale collections. That deal expires on January 31, 2017, and PVH may want to re-consider if it's worth it to continue being exclusive to a shrinking retailer in Macy's.
Net sales for the Tommy Hilfiger brand in North America fell 1.8% to $1.6 billion last year. Meanwhile, sales for PVH's Calvin Klein brand in North America -- which is also sold in Macy's -- rose 4.7% to $1.46 billion.