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☆ Department stores face another squeeze. This time, with store credit card revenue
▼ + stars: | 2024-04-10 | by ( Melissa Repko | In Melissa-Repko | ) www.cnbc.com time to read: +6 min

For fiscal year 2023, credit card revenue totaled $619 million for Macy's and approximately $475 million for Nordstrom . The three companies do not break out how much of total credit card revenue comes from late fees. All of that adds up to dwindling credit card revenue for retailers, who can now expect to see it shrink even further. Target's credit card revenue fell to $667 million last year, down from $734 million in the prior fiscal year. Gap does not disclose credit card revenue, but its Chief Financial Officer, Katrina O'Connell, said on an earnings call that losses from late fees will be "largely offset in 2024 by other levers within our credit card program."

Persons: Robert Nickelsberg, it'll, Jane Hali, Kohl's, David Silverman, Silverman, —, Michael Fiddelke, Macy's, Adrian Mitchell, It's, Nordstrom, Katrina O'Connell Organizations: Getty Images Department, Consumer Financial, Bureau, Associates, Nordstrom, Fitch, TD Bank, Shoppers, Adobe Analytics, Citi, Sam's Locations: New York City

☆ Macy’s Plans to Cut 2,350 Jobs and Close 5 Stores
▼ + stars: | 2024-01-18 | by ( Jordyn Holman | More About Jordyn Holman | ) www.nytimes.com time to read: +1 min

Macy’s, the country’s largest department store operator, told employees Thursday that it was laying off 13 percent of its corporate work force. The move comes as the company prepares to unveil a new strategy that its incoming chief executive will oversee. The cuts amount to roughly 2,350 jobs, or about 3.5 percent of the company’s overall work force, which includes employees at the subsidiaries Bloomingdale’s and Bluemercury. The company also said it would close five of its more than 560 Macy’s stores. Tony Spring will take over as Macy’s chief executive next month from Jeff Gennette, a company veteran who is retiring after holding the post since 2017.

Persons: Tony Spring, Jeff Gennette, Adrian Mitchell Organizations: The New York Times, Wall Street, Mr

☆ Macy's to cut more than 2,300 jobs, about 3.5% of its workforce, and close five stores
▼ + stars: | 2024-01-18 | by ( Melissa Repko | In Melissa-Repko | ) www.cnbc.com time to read: +5 min

Macy's on Thursday said it will cut about 3.5% of its workforce and close five of its namesake mall locations as the legacy department store moves to trim costs and turn around slowing sales. The move will affect approximately 2,350 positions across its corporate office and stores, company spokesman Chris Grams said. The majority of those — roughly 500 —are its namesake stores, followed by 158 Bluemercury stores and 56 Bloomingdale's stores. The department store chain's footprint has gotten smaller in recent years, however. He said since that 2020 announcement, Macy's had closed about 80 namesake locations and had plans to soon close another five.

Persons: Chris Grams, Grams, Macy's, Tony Spring, Jeff Gennette, Adrian Mitchell, Mitchell, It's, Gennette Organizations: Wall Street Locations: Arlington , Va, Leandro, Calif, Lihue, Hawaii, Simi Valley, Tallahassee, Fla, Cincinnati, San Francisco

☆ A credit card Christmas: Taking on shopping debt carries more risk this holiday season
▼ + stars: | 2023-10-26 | by ( Melissa Repko | In Melissa-Repko | ) www.cnbc.com time to read: +3 min

This holiday season, shoppers who ring up purchases on credit cards will pay more interest if they carry balances from month to month after the Federal Reserve's string of rate hikes. Already, investors and retailers have paid closer attention to credit card payments — and some have cited them as a concern. The company, which has its own branded credit cards, has seen lower revenues from those cards because of costs associated with bad debt and related write-offs. Mitchell said student debt, auto loans and mortgages have all become bigger burdens in a high interest rate environment. For retailer-issued cards, the average interest rate is nearly 30%, a record high, according to data from Bankrate.

Persons: Alexi Rosenfeld, Aditya Bhave, Bhave, Taylor Swift, Wall, Adrian Mitchell, Mitchell, Doug McMillon, Tim Quinlan, Wells, Quinlan Organizations: Getty, Shoppers, Bank of America, Consumers, Walmart, U.S . Federal Reserve Locations: New York City, Wells Fargo

The union is pushing for higher wages, shorter work weeks and assurances from the country’s top automakers that new electric vehicle jobs will be unionized. The dueling appearances reflect what will likely be a chief dynamic of the 2024 general election, which is increasingly looking like a rematch between Trump and Biden. Trump has tried to capitalize on the strike to drive a wedge between Biden and union workers, a constituency that helped pave the way for the ex-president’s surprise 2016 victory. While Biden has not implemented an electric vehicle mandate, he has set a goal that half of all new vehicle sales be electric by 2030. He’s set to hold a press conference to highlight Trump’s “false promises to blue collar and union workers in Michigan and across America.”___AP Auto Writer Tom Krisher in Van Buren Township, Michigan, contributed to this report.

Persons: Donald Trump, Joe Biden, Trump, plumbers, Biden, ”, Biden’s, Joe Biden’s, ” Trump, autoworkers, “, Shawn Fain, ” Fain, Jason Miller, Adrian Mitchell, ” Mitchell, “ He’s, Mitchell, Matthew Coleman, Romulus, Ford —, Asa Hutchinson, He’s, Tom Krisher Organizations: Republican, United Auto Workers, Trump, Biden, Drake Enterprises, UAW, Democratic, U.S . Trump, U.S, Supreme, General Motors, Big Three, —, Motors, Stellantis, Arkansas Gov Locations: California, Michigan, Detroit, Clinton Township, Michigan , Wisconsin, Pennsylvania, Lordstown , Ohio, Romulus , Michigan, Korean, U.S, America, Van Buren Township , Michigan

☆ Could Fed Chair Powell’s Jackson Hole speech send stocks plunging again?
▼ + stars: | 2023-08-24 | by ( Krystal Hur | ) edition.cnn.com time to read: +6 min

New York CNN —With Nvidia earnings out of the way, the next test for US markets is Federal Reserve Chair Jerome Powell’s annual speech at the Jackson Hole economic summit on Friday. “In August of 2022, Powell knew the Fed had several more rate hikes to go. Macy’s sounds the alarm on credit card delinquenciesMacy’s is warning of a spike in customers who are failing to make credit card payments, adding to the evidence of mounting financial stress on consumers, reports my colleague Matt Egan. This situation is hurting Macy’s business, driving down credit card revenue by 36% year over year and contributing to a quarterly loss, he said. Citing worsening consumer leverage metrics, Macy’s is bracing for a further increase in “bad debt” in its credit card portfolio.

Persons: Jerome Powell’s, Powell, ”, — Powell, “, Tom Graff, Matt Egan, ” Adrian Mitchell, Danielle Wiener, Bronner, Qiana Di, Di Bari, Read Organizations: CNN Business, Bell, New York CNN, Nvidia, Kansas, Fed, Dow Jones, “, Bureau of Labor Statistics Locations: New York, Wyoming, Maui, United States, Qiana Di Bari, Lahaina, Kahului

☆ Macy’s sounds the alarm on credit card delinquencies
▼ + stars: | 2023-08-23 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

This situation is hurting Macy’s business, driving down credit card revenue by 36% year over year and contributing to a quarterly loss, he said. Citing worsening consumer leverage metrics, Macy’s is bracing for a further increase in “bad debt” in its credit card portfolio. “I think the credit card revenue is an indication of some of the pressures that we’re actually seeing on the consumer,” Mitchell said. Consumer credit card debt topped $1 trillion during the second quarter for the first time on record, according to the New York Federal Reserve. More concerningly, new credit card and auto loan delinquencies have now surpassed pre-Covid levels, according to Moody’s Investors Service.

Persons: New York CNN —, ” Adrian Mitchell, Macy’s, ” Mitchell, ” Macy’s, Locker Organizations: New, New York CNN, Citibank, Consumer, New York Federal Reserve, Moody’s Investors Service, Credit Locations: New York, Wells

[1/2] The Macy's logo is displayed on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 19, 2021. A bellwether for back-to-school demand, Foot Locker joined rival Dick's Sporting Goods (DKS.N) on Wednesday to cut annual profit forecast, sending the shares of sportswear retailers tumbling. "We did see a softening in trends in July and are adjusting our 2023 outlook to allow us to best compete for price-sensitive consumers," Foot Locker CEO Mary Dillon said. Walmart last week raised its full-year forecasts and beat second-quarter results, benefiting from strong demand for its low-priced groceries. Reporting by Ananya Mariam Rajesh and Aishwarya Venugopal in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

Persons: Andrew Kelly, Cristina Fernandez, Foot Locker, Mary Dillon, Macy's, Adrian Mitchell, Locker, Thomas Hayes, Hogan, Ananya Mariam Rajesh, Aishwarya Venugopal, Arun Koyyur Organizations: New York Stock Exchange, REUTERS, Dick's Sporting, Target, Walmart, Riley Wealth, Thomson Locations: Manhattan , New York City, U.S, Bengaluru

☆ Macy's warning of weak second-half demand hits retail sector shares
▼ + stars: | 2023-08-22 | by ( Savyata Mishra | ) www.reuters.com time to read: +2 min

Its cautious view also weighed on the retail sector shares, including Kohl's (KSS.N) and Nordstrom (JWN.N). In a clear sign that higher borrowing costs were straining customers, Macy's credit card revenue, which accounted for about 2% of the total revenue in the quarter, slumped 41%. Throughout the quarter, Macy's cleared excess stock after a move to convert its merchandise for the spring and summer hurt demand, leading to a slip in gross margin. Macy's reaffirmed its expectations for 2023 sales of $22.8 billion to $23.2 billion and adjusted full-year profit per share between $2.70 and $3.20. At $12.8, Macy's shares were set for their worst session since March last year.

Persons: Macy, Brendan McDermid, Adrian Mitchell, Paul Lejuez, Mitchell, Macy's, Jessica Ramirez, Jane Hali, Savyata Mishra, Arun Koyyur Organizations: REUTERS, Nordstrom, Citi, Target, Thomson Locations: New York , New York, U.S, Bengaluru

☆ JPMorgan says this retailer is a buy as it nears an 'inflection point'
▼ + stars: | 2023-04-03 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Analyst Matthew Boss upgraded the retail stock to overweight from neutral and increased his price target by $1 to $29. His price target implies the stock will rally 65.8% over the next year from where shares ended Friday's session. He said the retailer should be able to see multiyear EBITDA margins in the low double digits due to five "self-help" growth vectors. Boss said the stock has an attractive risk-to-reward ratio and is at an attractive entry point following recent underperformance. Macy's trades at around two times its 2024 EBITDA, he said, which places it around 50% below the average of stocks in the department stores/mall-based specialty category.

☆ Macy's CEO Gennette to retire next year, insider Spring to succeed
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +2 min

March 29 (Reuters) - Macy's Inc (M.N) on Wednesday said its Chief Executive Officer Jeff Gennette will retire in February, after serving the U.S. department store chain for 40 years and will be succeeded by insider Tony Spring. Spring, who is the chairman and CEO of Macy's unit Bloomingdale's, has been with the company for 36 years. He was named as a successor to Gennette after an internal and external search, Macy's said. Macy's said as part of the leadership transition, Chief Financial Officer Adrian Mitchell's responsibilities have been expanded to include the role of chief operating officer. Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Rashmi AichOur Standards: The Thomson Reuters Trust Principles.

☆ Macy's CEO Jeff Gennette to retire after 40 years at the department store
▼ + stars: | 2023-03-29 | by ( Mary Hanbury | ) www.businessinsider.com time to read: +3 min

Macy's CEO Jeff Gennette will retire and step down from his role in February 2024. Gennette has been at the department store chain for 40 years. Jeff Gennette joined Macy's in 1983 as an executive trainee and worked his way up the ranks, becoming CEO in 2017. Macy's said Wednesday that Tony Spring, CEO of Macy's sister company Bloomingdale's, will take over Gennette's role. CFO Adrian Mitchell will add the role of COO to his responsibilities – overseeing stores, tech, and supply chain needs, Macy's said.

☆ Macy's CEO Jeff Gennette, who's led the company's turnaround effort, will retire next year
▼ + stars: | 2023-03-29 | by ( Melissa Repko | ) www.cnbc.com time to read: +3 min

Macy's CEO Jeff Gennette will retire early next year after a four-decade career at the company, the department store chain announced Wednesday morning. He will be succeeded by Tony Spring, CEO of the company's higher-end department store banner, Bloomingdale's. In addition to the CEO change, Macy's Chief Financial Officer Adrian Mitchell will take on an expanded role and also serve as the company's chief operating officer. In a news release, Macy's said Spring, 58, was tapped as its next leader after an internal and external search. Gennette called Spring and Mitchell "an ideal team to build on our momentum and propel Macy's, Inc. into the future."

☆ Macy's warns holiday-quarter will come in light, citing squeeze on shoppers' wallets
▼ + stars: | 2023-01-06 | by ( Melissa Repko | ) www.cnbc.com time to read: +2 min

Macy's on Friday warned its holiday-quarter sales will come in on the lighter side, saying consumers' budgets are under pressure and that it anticipates that squeeze to continue into this year. It expects adjusted diluted earnings per share to be in the previously issued range of $1.47 to $1.67. For the year-ago period, Macy's reported revenue of $8.67 billion and adjusted earnings per share of $2.45. As it orders inventory, Gennette said it is using customer data to pick the merchandise that will sell and caters to customers who are looking for fashionable items and also seeking value. Gennette, Macy's Chief Financial Officer Adrian Mitchell and Chief Merchandising Officer Nata Dvir, will participate in the investor conference next week.

☆ Retailers’ Holiday Discounts Are Steeper This Year, CFOs Say
▼ + stars: | 2022-11-23 | by ( Kristin Broughton | ) www.wsj.com time to read: +5 min

Some chief financial officers in the retail sector say markdowns are necessary to start the new year without the drag of excess stock on their shelves. Other CFOs say their companies view the promotional environment as an opportunity to attract more customers. Below is a roundup of retail CFOs’ remarks on this topic during recent earnings calls. All the surveys that we’ve seen would indicate that the value is going to be an important driver for the customer. Historically, we’ve managed a collection of four basic inventory levers: cancellations, [return-to-vendors], push outs and vendor allowances, or VAs.

☆ Macy's to hire more than 41,000 workers for holiday shopping season
▼ + stars: | 2022-09-26 | by ( ) www.reuters.com time to read: +1 min

Register now for FREE unlimited access to Reuters.com RegisterShoppers are seen outside Macy's in the Manhattan borough of New York City, New York, U.S., March 30, 2021. Sept 26 (Reuters) - Macy's Inc (M.N) said on Monday it plans to hire more than 41,000 full-time and part-time workers ahead of the upcoming holiday shopping season. Last year, Macy's had planned to hire 76,000 full- and part-time workers for the holiday season, with about 48,000 of the roles specifically for the holiday season and the rest of the roles were permanent positions beyond the holidays. Earlier this month, Macy's Chief Financial Officer Adrian Mitchell said the company expects holiday shopping to start early this year. Last week, Target Corp (TGT.N) said it plans to hire up to 100,000 seasonal workers for the holiday season, while rival Walmart Inc (WMT.N) announced plans to add 40,000 workers in seasonal and full-time roles.

☆ Retailers Face Pressure to Offer Discounts While Battling Inflation
▼ + stars: | 2022-09-23 | by ( Kristin Broughton | ) www.wsj.com time to read: +7 min

Retailers and their finance chiefs are facing a challenge balancing consumer expectations for discounts and the need to keep raising prices to offset high inflation. With more discounts available and additional inventory being sold through off-price retailers, consumers are expecting to find good deals when they go shopping, executives said. Last month, the average discount at such retailers was 16%, up from 15% a year earlier, UBS said. That is prompting competitors—including those that don’t have too much inventory—to fine-tune their pricing strategies, offering discounts to stay competitive even as they grapple with higher costs. The company’s operating margin fell to 15% from 18.1% a year earlier, according to FactSet, a data provider.

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