Macy's Inc. said same-store sales fell 7.1 percent in January. Much of that drop, however, was attributed to one fewer week in January 2008 versus January 2007, but same-store sales still missed Macy's estimate of minus 4 to 6 percent.
Total sales in January fell 29 percent to $1.28 billion, from $1.78 billion last year.
Macy's also announced that it is cutting 2,550 jobs as part of a restructuring. The department-store operator is reorganizing and will consolidate regional divisions resulting in 250 new positions. It also raised the lower end of its fiscal fourth-quarter profit outlook due to a tax settlement.
The company predicted fourth-quarter earnings will be between $1.75 and $1.80 per share, due to a tax credit primarily related to selling a former subsidiary. In November, Macy's said it expected a profit of $1.70 to $1.80 per share and analysts expect $1.71 per share.
For the fourth quarter, same-store sales fell 2 percent, while total sales fell 6.1 percent to $8.6 billion, from $9.16 billion last year.
For the fiscal year, same-store sales fell 1.3 percent while total sales fell 2.4 percent to $26.32 billion, from $26.97 billion last year.
