In a separate announcement, the department store retailer said same-store sales were off 2.1% in November and December from the same months a year ago.
It said 3,900 jobs would go in 2017 as a result of 68 store closures, out of a planned 100 announced a year ago.
Macy's will close 68 stores and reorganize "the field structure that supports the remaining stores, reinforcing the strategy of fewer stores with better customer experience", the retailer said in a statement.
Macy's Inc., which has corporate offices in Cincinnati and New York City, now operates about 880 stores nationwide under the names Macy's, Bloomingdale's, Bloomingdale's Outlet, Macy's Backstage, and Bluemercury.
Macy's share price fell more than 10% in after-hours trading in NY following the announcement.
Customers have turned to other low-priced alternatives in the United States such as TJ Maxx, as well as online retail through Amazon and other e-commerce companies.
The Macy's department store chain announced Wednesday that it.
It had expected profits to be between $3.15 and $3.40 a share, but has now cut this to $2.95-$3.10.
And the news was not all glum for the working class. The total numbers of stores closed by Sears in the fiscal year will total more than 200, bringing the company to fewer than 1,500 stores - down almost 60 percent from 3,500 locations in 2011.
Macy's CEO Terry Lundgren called the closings "part of our strategy to help us right-size our physical footprint" even as it expands its digital offerings.
"We are closing locations that are unproductive or are no longer robust shopping destinations due to changes in the local retail shopping landscape, as well as monetising locations with highly valued retail assets".
Macy's is not alone in taking action to combat challenging retail circumstances.
Who knows? Miracles have been known to happen on 34 Street.