Macy's to cut 100 executive-level jobs after lagging holiday sales

Feb. 26 (UPI) -- Macy's will cut 100 management-level jobs at it looks to trim $100 million in costs after a lackluster holiday shopping season.

The retailer said in its fourth-quarter earnings report that it beat lowered expectations but individual same-store sales fell short of projections, CNBC reported. The layoffs will affect 100 positions at the vice-presidential level or above. That move will speed up decision making, the company said.

"We are also a more agile and flexible organization. The steps we are announcing to further streamline our management structure will allow us to move faster, reduce costs and be more responsive to changing customer expectations," CEO Jeff Gennette said in the earnings report.

He said Macy's enters 2019 as a stronger business with healthier stores, a growing e-commerce business and a mobile experience that's "resonating with our customers."

Macy's reported earnings of $2.73 a share, beating the expectation of $2.53. Revenues also beat expectations at $8.46 billion compared to Wall Street projections of $8.45 billion. But that's down from $8.67 billion in revenues a year ago.

And same-store sales were only up 0.7 percent compared to expectations of 0.9 percent.

Online sales grew by a double-digit percentage.

Gordon Haskett analyst Chuck Grom said Macy's efforts to increase sales failed to deliver, making him skeptical that the company can deliver in 2019.

Macy's weak holiday sales "came despite a strong consumer environment with favorable trends on both the tourism and weather fronts," Grom told CNBC.

In January, Macy's announced it would close 11 stores.