Shares of Macy's rebound after announcing to close 11 stores

NEW YORK, Jan. 5 (Xinhua) -- Shares of Macy's rebounded in the early trading on Friday, after the company announced to close 11 stores in early 2018.

The department store chain said Thursday that it would close nearly a dozen stores this year as part of a plan to continue improvements in organizational efficiency and to allocate resources to support its growth strategy.

Macy's expected annual expense savings of 300 million U.S. dollars from these actions beginning in fiscal-year 2018, and intended to reinvest in the business.

The company announced the closure of 11 stores, and with these closures, Macy's will have completed 81 of the approximately 100 planned store closures announced in August 2016. The company intends to close approximately 19 additional stores as leases or operating covenants expire or sale transactions are completed.

These closures are part of a multi-year effort by Macy's to ensure the optimal mix of brick & mortar stores and digital footprint. Including the stores announced Thursday, the company has closed 124 stores since 2015.

"Looking ahead to 2018, we are focused on continuous improvement and will take the necessary steps to move faster, execute more effectively and allocate resources to invest in growth," Macy's Inc. chief executive officer Jeff Gennette said in a statement.

Shares of Macy's have fallen more than 25 percent over the past 12 months, and the stock plunged Thursday on this news. Enditem