Macy's Inc margins could end the year as much as 80 basis points lower than in 2016, CFO Karen Hoguet warned on Tuesday in comments that sent shares of the department store chain sliding to five-year lows.
Macy's said its strategy of opening its Backstage off-price chain within its department stores drives traffic into the main store, but experts say the move confuses customers and could hurt Macy's longer-term results.
Starboard Value LP, the activist hedge fund that had pressured Macy's Inc to separate its real estate from its retail business, has sold its stake in the U.S. department store operator, sources said on Wednesday.
Macy's CEO and Chairman Terry Lundgren will step down and be succeeded by President Jeff Gennette in the first quarter of 2017. Lundgren will remain as Executive Chairman and continue to work closely with Gennette.