Macy's is predicting financial results for the 2014 fiscal year to fall between $4.35 and $4.37 per diluted share, higher than the retailer's initial expectations of $4.25 and $4.35 per share.
This estimate does not include approximately $110 million that is designated for merchandising and marketing restructuring, as well as store and field adjustments and store closings, among other tasks.
These updated financial predictions come on the heels of Macy's announcing several executive changes and revealing that it will acquire cosmetics brand and retailer Bluemercury. In a $210 million cash purchase, Macy's is aiming to further expand its beauty business and create better experiences in standalone Bluemercury stores. The transaction is expected to be finalized in Macy's Q1 2015, which ends May 2, 2015.
Bluemercury, based in Washington, D.C., operates approximately 60 specialty stores in 18 states. Marla Malcolm Beck will continue to act as CEO and Barry Beck will continue as Chief Operating Officer. The current team of up to 500 sales associates will remain in their current roles.
Organizational Shifts Drive Omnichannel Change
Aligning with its goal of driving profits as an omnichannel retailer, Macy's has announced a series of new executive appointments.
Company President Jeff Genette will concentrate more time on facilitating broader growth strategies within the existing omnichannel business. He will oversee merchandise planning, as well as merchandising and marketing for Macy's stores and digital, and provide brand development. Although he will still report to CEO Terry Lundgren, he will relinquish day-to-day responsibilities as Chief Merchandising Officer.
Among the other executive changes:
- Timothy Baxter, Macy's former Executive Vice President and General Merchandise Manager for Ready-to-Wear, will now succeed Genette as Chief Merchandising Officer;
- Previously Executive Vice President for Men's and Kids Private Brands, Molly Langenstein has been promoted to Chief Private Brands Officer;
- Patti Ongman, former Vice President for Omnichannel Strategies, has been promoted to Chief Merchandise Planning Officer; and
- Peter Sachse, Chief of Stores since 2012, will take on a new role as Macy's Chief for Innovation and Business Development. He will report directly to Lundgren and oversee current and future growth initiatives, focusing on off-price strategies, new store formats, the application of technology to the shopping experience, among other areas.
Macy's will report complete Q4 sales and earnings on Feb. 24, 2015.