Messi Stores Will Cut Executives In Order To Cut Costs

Inc. (NYSE:M) Messi group's decision to reduce the size of the management scale to save costs is encouraging to investors. The largest US chain corporation's share price has soared up to $5.09% to $25.60 in the early morning after its sluggish holiday season on Tuesday.

In the earnings report of Macy s Inc. Messi group, the new round of cost reduction plan will simplify the senior management structure to focus additional resources on improving supply chain efficiency, innovating and strengthening inventory management, and building a broader and healthier customer base.

The group will cut 100 senior management positions, thereby saving $100 million a year from the current 2019 fiscal year, but in the 2018 fiscal year it will generate a one-time restructuring fee of $80 million.

According to the world clothing and shoe net, as of the 2018 fiscal year ended February 2, 2019, the Macy 's Inc. Messi Group recorded a net profit of US $740 million, a sharp decrease of 45.1% compared with the previous year's 1 billion 347 million US dollars, and EPS also dropped from US $4.38 to 2.37 US dollars.

Adjusted EPS is US $2.73, which is better than FactSet's combined forecast of US $2.53.

But the fourth quarter sales are bad.

It is expected that although the comparable sales growth in the private sector and the authorized sector extends to fifth quarters, the increase is only 0.7%, less than 0.9% of the market expectation, and has not yet reached the group's stated goal.

Net sales of $2.5% to $8 billion 455 million over the previous year were slightly better than the market forecast of $8 billion 440 million.

After the end of the holiday season in 11 and December, the group hastened to reduce its annual revenue and earnings outlook in January 10th, and attributed the reasons to women's sportswear, household clothes, etc.

The demand for jewellery, fashion watches and cosmetics was weak, and the group's stock price jumped 18% on that day.

The Macy 's Inc. Messi group is not the only loser in the holiday season, and the US retail sector has unexpectedly appeared in the once favored holiday season in Waterloo.

In December, US retail sales fell by 1.24% year-on-year, the biggest monthly decline since September 2009.

Shocking is the fact that not only the retail sales of the Department Store recorded a 3.3% decline, but also Internet sales fell by 3.9%, which added to the argument that the slowdown in the US economy slowed down from the end of 2018.

Macy 's Inc. Messi Group expects net sales in the 2019 fiscal year to be roughly the same as last year's US $24 billion 971 million. Self run and authorized sales will slow down from 2% last year to 0-1%. Adjusted EPS will be between us $3.29 and market expectations of US $3.29.

To maintain growth, the group will invest further in this year's clothing, premium jewelry, large products, men's formal wear, women's shoes and beauty products, and double the number of renovated and upgraded stores from 50 last year. Meanwhile, it will introduce more discount business Backstage to 45 stores.

Paula Price, chief financial officer, revealed at a conference call that the group will announce the mid term (3-5 year) cost reduction target later this year.

Since 2015, the Macy 's Inc. Messi group has completed several rounds of layoffs and layoffs, which has significantly reduced the annual expenditure by 550 million US dollars and reduced thousands of manpower burden.

Analysts believe that promoting sales is the most urgent problem for the group and even the general retail industry.

This week, the Target Corp. (NYSE:TGT) Taghit group announced the addition of three women's clothing brands -- underwear brand Auden, home wear brand Stars Above, and home wear and underwear brand Colsie. It is regarded as a powerful weapon to directly challenge the secret of the largest US underwear retailer Victoria "s Secret Vitoria".

Meanwhile, luxury goods department Nordstrom Inc. (NYSE:JWN) Nodes Tron has also been actively developing relationships with young fashion brands such as J.Crew, Madewell and Anthropologie.

Macy 's Inc. (NYSE:M) closed narrowed to 1.48% on Tuesday, closing at $24.72.

In the past 12 months, the stock fell 12.96%, and lost nearly 3% of the S & P 500 index.

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