WASHINGTON – Nearly two years after phasing out its Donald Trump line of menswear, Macy’s stock has plummeted to its lowest levels in years.
Macy’s dumped Trump merchandise in July 2015 after the then-Republican presidential candidate made “derogatory” comments about Mexican immigrants.
“Macy’s is a company that stands for diversity and inclusion,” the company said at the time. “We are disappointed and distressed by recent remarks about immigrants from Mexico.”
Trump responded by calling for a boycott of the store, tweeting: “Those who believe in tight border security, stopping illegal immigration, [and] SMART trade deals [with] other countries should boycott Macy’s.”
The boycott by Trump supporters has taken a toll, according to Fortune magazine.
Macy’s now plans to close up to 100 stores and lay off 10,000 workers as sales plummet.
For the quarter ending April 29, Macy’s profits dropped to $71 million from the $116 million that was reported during the same time last year. It’s a 38 percent drop in profits. Sales also fell from $5.8 billion to $5.3 billion, a drop of 7.5 percent.
Macy’s CEO Jeff Gennette called the first quarter report for 2017 “disappointing” and would not rule out closing more stores.
“I’m not going to say we’re not going to close more stores beyond those 100,” Gennette said, “but we do feel we got to the right level.”
Macy’s reported its ninth straight quarter of declining sales this month.
Macy’s stocks also hit the lowest price since February 2011, after it warned investors that profit margins would shrink in the coming year.
Macy’s stock tumbled 14 percent after the announcement, and the company is not expecting a recovery anytime soon.
Macy’s stock was priced at $69 per share at the end of June 2015, right before Trump called for a boycott. This year, the price per share is $22.