Macy's buying Bluemercury for $210M, raises full-year guidance

Macy's to buy BlueMercury in $210 million deal

Macy's on Tuesday said it foresees earnings for 2014 coming in higher than it previously projected as the retail giant laid out plans to purchase beauty products maker Bluemercury for $210 million in cash.

Bluemercury operates about 60 stores in 18 states in the United States, most of which also have in-house spas.

Macy's said Bluemercury would operate as a stand-alone business and would continue to be led by Marla and Barry Beck, who co-founded it in 1999.

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Macy's now sees full-year 2014 earnings of between $4.35 and $4.37 per diluted share, higher than the previous range $4.25 to $4.35 per diluted share.

The retailer said comparable-store sales at existing locations rose 2.5 percent in the fourth quarter as more people visited them during the holiday season. Full-year 2014 comp-store sales increased 1.4 percent.

"We are very pleased with our fourth-quarter performance, which represents a strengthening trend from the third quarter and spring season," CEO Terry Lundgren said.

The retailer also announced a number of moves as it looks to "fully align the company`s management and organization in key functions."

In a statement, Macy's said President Jeff Gennette will relinquish his day-to-day duties as chief merchandising officer and will concentrate more of his time on the company's ominchannel business.

Timothy Baxter would succeed Gennette as chief merchandising officer.

Macy's shares fell about 1 percent in after-hours trading on Tuesday. The stock fell some 2 percent in early trading on Wednesday.

Reuters contributed to this report.