Merry Christmas for Macy's, but probably not a happy new year

Source: MGN Online

NEW YORK (AP) - Macy's says it enjoyed sales growth during the holiday season, but the improvement wasn't enough to offset a tough year.

The department store said Thursday sales at established stores rose 1 percent in the November-December period. It now expects that figure to decline between 2.4 percent and 2.7 percent for the year. Total revenue is forecast to decline 3.6 percent to 3.9 percent compared to a year earlier.

Macy's also says it will close another 11 stores early this year, cut jobs and streamline non-store functions. That should produce savings of about $300 million.

Meanwhile, J.C. Penney's revenue at stores opened at least a year rose 3.4 percent for the nine-week period ended Dec. 30.

The holiday sales growth is encouraging for department stores, which are struggling to reinvent themselves.

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