Check out which companies are making headlines after the bell on Wednesday:
Macy’s shares fell more than 10 percent in extended trade Wednesday after the retailer posted disappointing holiday sales. The department store’s comparable sales fell 2.1 percent in November and December, which was at the low end of its previous guidance. It held to its 2016 comparable sales guidance of a 2.5-percent to 3-percent decline, but now expects lower full-year diluted earnings. Its new estimate is between $2.95 and $3.10 a share, while its previous expectations were between $3.15 and $3.40 per share.
The company also released the locations of 68 of the 100 stores it plans to close, announcing it will eliminate layers of management to cut costs. Macy’s estimated its workforce will be cut by 6,200 and another 3,900 workers will be displaced by the store closures—although some could be reassigned.
Kohl’s stock plummeted 15 percent after the retailer slashed its full-year guidance to between $3.60 and $3.65 a share. Previous estimates had the retailer making $3.94 a share before the announcement that its comparable sales for November and December fell 2.1 percent. In a news release, the company said its strongest categories were men’s, home and footwear, wile accessories was the most challenging.
Nordstrom also took a hit after the bell, dropping 6 percent. In their news releases, both Kohl’s CEO Kevin Mansell and Macy’s CEO Terry Lundgren identified macro trends in retail that could also affect the department store chain. Mansell called holiday season sales “volatile,” noting that “strong sales on Black Friday and during the week before Christmas were offset by softness in early November and December.” Lundgren, on the other hand, said “the holiday season reflects the broader challenges facing much of the retail industry.”
source”cnbc”
