Macy's Inc. has made a downward revision to its fourth-quarter guidance after a timing change on the completion of its Brooklyn real estate transaction with Tishman Speyer. Macy's will receive $270 million in cash and will use $100 million for renovations. The retailer will record about $86 million in gains during the fourth quarter, with the remaining $164 million booked in fiscal 2016 and 2017. The retailer said it previously assumed the entire gain would apply to the fourth quarter of 2015. Now fourth-quarter earnings are expected to range between $1.85 to $1.90 compared with a previous range of $2.18 to $2.23. Full-year earnings are now forecast between $3.54 and $3.59 from $3.85 to $3.90. This full-year guidance excludes expenses related to previously announced cost efficiences and asset impairment charges largely tied to spring 2016 store closures. Macy's announced that it had sold the upper floors of its nine-story Brooklyn store in October. It will continue to own and operate the first four floors and the lower level. Macy's shares are up 1.1% in morning trading and down 39% for the past 12 months. The S&P is down 5.9% for the past year.
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