Macy's (M - Get Report) stock was down nearly 9% to $32.80 in after-hours trading on Wednesday after cutting its full-year profit outlook and reporting a same-store sales decline of 2.1% for November and December.

The Cincinnati-based retailer now expects to report earnings between $2.95 and $3.10 per share for 2016, down from between $3.15 and $3.40 a share. 

Macy's maintained its same-store sales guidance of a decrease between 2.5% and 3% for the year, noting that it expects to be at the low end of this range.

"We believe that our performance during the holiday season reflects the broader challenges facing much of the retail industry," CEO Terry Lundgren said in a statement Wednesday afternoon.

He noted that weakness in handbags and watches weighed on the results.

Additionally, Macy's announced 68 of the 100 stores that it will shutter under a previously announced cost-cutting plan.

Macy's expects the restructuring to save it about $550 million a year starting in 2017, allowing the company to invest another $250 million in its digital business, Bluemercury brand, Macy's Backstage bargain stores and China.

The company expects to record charges of $250 million, or 50 cents a share, primarily in the 2016 fourth quarter.

These charges were not included in previous earnings guidance and are in addition to the $249 million recorded in the second quarter as an estimate of asset impairment and other charges primarily related to 2016 store closings.