Macy's had previously announced that it would close roughly 100 stores, and reiterated Tuesday that it still plans to close another 34 stores or so over the next few years.
The company says it was a complicated decision choosing which stores to close, because none of them were cash flow negative, CFO Karen Hoguet told analysts (via CNBC).
Like fellow retailers Sears and Kmart, Macy's has been struggling to attract customers in a marketplace that is increasingly shifting toward online shopping.
Looking ahead, Macy's expects FY17 comparable sales (owned + licensed) to fall between 2.0% and 3.0%.
Last month, Macy's announced plans to shut down 68 stores and cut more than 10,000 jobs following disappointing sales during the holidays. However, he added the department store made significant progress on key initiatives "that are starting to bear fruit", including improved digital platforms, the rollout of a new approach to fine jewelry and women's shoes, an increase in exclusive merchandise and the refinement of the clearance and off-price strategy.
While the department store chain's net income slid 13 percent year-over-year, to $475 million, or $1.54 per diluted share, adjusted diluted earnings per share - at $2.02 - topped analysts' bets for diluted EPS of $1.96.
"We know we must evolve our strategy and execute faster", Lundgren said.
The company "took a big step forward in rightsizing our physical footprint and restructuring our entire organization", outgoing CEO Terry Lundgren said.
Excluding impairments, store closings, settlement charges and other costs, per-share profit fell to $2.02 from $2.09.
The bottom-line results beat the analysts' predicted quarterly earnings of $1.96 per share, while revenues missed the forecast $8.62 billion.
The company's net sales fell 4 percent to $8.52 billion, the eighth straight quarter of decline, and coming in below estimates of $8.62 billion.
Gross margin expanded to 38.3% from 37.4%.
As sales slump, the Wall Street Journal reported that Hudson's Bay - the Toronto and New York-based parent company of Lord & Taylor and Saks Fifth Avenue - might be interested in buying Macy's.
There was no mention of any discussions in Tuesday's report.