“While 2016 was not the year we expected, we made significant progress on key initiatives that are starting to bear fruit…including continued improvement in our digital platforms, the rollout of our new approach to fine jewelry and women’s shoes, an increase in exclusive merchandise and the refinement of our clearance and off-price strategy. We also took a big step forward in rightsizing our physical footprint and restructuring our entire organization. The combination of these initiatives will help us gain market share, return to growth and drive enhanced value for our shareholders over time,” said Terry J. Lundgren, Macy’s Chairman and Chief Executive Officer.

The management confirmed it will be keeping close attention to the evolution of the retail environment and changing consumer shopping behaviors, as all changes will have to be incorporated in the company’s overall strategy and executed faster. “Key to this is enhancing the customer experience in our stores where we are developing and testing concepts that feature new merchandise and entertainment options alongside enhanced technology to make shopping simpler. Additional initiatives that we believe will improve sales trends in 2017 include continued omnichannel improvements, an updated marketing strategy and a simplified pricing structure.”, Mr Lundgren added.

Sales in the fourth quarter of 2016 reached 8.515 billion US dollars, down by 4.0% from total sales of 8.869 billion US dollars in the fourth quarter of 2015. On an owned basis, fourth quarter comparable sales declined by 2.7%.

Sales in fiscal 2016 totaled 25.778 billion US dollars, down by 4.8% from total sales of 27.079 billion US dollars in fiscal 2015.

Fourth quarter 2016 earnings per diluted share were 1.54 US dollars. Excluding impairments, store closing, settlement charges and other costs of 247 million US dollars (147 million US dollars after tax or 48 cents per diluted share), earnings per diluted share on an adjusted basis were 2.02 US dollars for the fourth quarter of 2016.
 
In fiscal 2016, the company opened 27 stores and closed 66 stores, all as previously announced. Macy’s, Inc. plans to close an additional approximately 34 stores over the next few years for a total of approximately 100 stores.

Macy’s, Inc. also announced today that its previously announced CEO transition will occur on the 23rd of March 2017. Jeff Gennette, President of Macy’s, Inc., will assume the CEO role and Terry Lundgren will continue as Executive Chairman of the company.