On December 5, 2024, it was reported, Macy's Inc. is delaying its Q3 earnings results in order to complete an investigation into accounting irregularities, following its discovery that an employee had purposely hidden between $132 million to $154 million in delivery expenses. The company's Q3 report had been scheduled for Tuesday. The "erroneous accounting accrual entries" were from Q4 2021 to Q3 this year and didn't affect the department store's cash management or vendor payments, per a financial filing. The retailer issued preliminary Q3 results: Net sales fell 2.4% year over year to $4.7 billion, with comps, including licensed and marketplace sales, down 1.3%. Macy's net sales fell 3.1%, with overall comps down 2.2% and "first 50" comps up 1.9%; Bloomingdale's rose 1.4%, with comps up 3.2%; and Bluemercury rose 3.2%, with comps up 3.3%. In a statement, Spring said that Macy's promotes "a culture of ethical conduct" and that the inquiry is ongoing. Much is riding on the season: Macy's Inc. last year derived 65% of its annual operating profit from the fourth quarter, according to analysis from S&P Global Ratings earlier this month. In another statement, Spring noted that comparable sales at all banners so far this month have improved compared to the third quarter. Still, the accounting snafu distracts from the fact that overall Macy's had a decent Q3. The 1.3% comp decline beat Evercore's estimate, and its "first 50" stores those that have been revamped had their third straight quarter of positive comps. Comps at those locations rose 1.9% year over year, Macy's said.
On November 21, 2024, it was reported, On Nov. 15, high-end furniture manufacturer EJ Victor made the decision to lay off nearly all its employees. The decision came after Hurricane Helene ravaged the company's Morganton plant in late September, rendering it inoperable. The company's insurance provider, Fireman's Fund, then allegedly failed to provide coverage, prompting EJ Victor to sue. Now, the company has put out a statement: "The damage caused by Helene brought all our manufacturing operations to a halt, damaged our equipment and inventory, rendering some equipment beyond repair and much of our inventory a total loss. "Based on the language of our insurance policy with Fireman's Fund and the advice of our attorneys, we believe the losses we suffered caused by Helene are clearly covered by our insurance policy. When the insurance carrier denied coverage, we promptly filed suit in federal court in Asheville. We intend to pursue this suit vigorously and seek recovery for all losses covered by the policy justified by the facts and the law." The company goes on to say that it will pay all 121 impacted employees through this Friday, Nov. 22. After that date, it has encouraged employees to apply for extended N.C. unemployment benefits. "Unfortunately, the position of the insurance company has left us with no alternative but to lay off many valued and skilled employees who have worked with EJ Victor for many years. We are deeply grateful to our employees who have worked tirelessly to assess and minimize the damage. We request everyone's thoughts and prayers as we work through this disaster." EJ Victor has only retained just a small number of employees in administrative roles, the company told Furniture Today.
On November 19, 2024, it was reported, Consolidated delivered sales of $521 million Up 2% versus prior year Retail segment sales increased 3% Led by independent La-Z-Boy Furniture Galleries acquisitions, new stores, and record Labor Day sales results GAAP and Non-GAAP(1) diluted EPS of $0.71 Delivered sales and Non-GAAP(1) operating margin ahead of guidance Company-owned La-Z-Boy Furniture Galleries network grew by five stores, with three new stores, two newly acquired independent La-Z-Boy Furniture Galleries stores, and an additional two-store acquisition signed and expected to close in the third quarter Quarterly dividend increased to $0.22, 10% higher than the previous dividend
On November 19, 2024, it was reported, Walmart's third quarter consolidated revenue rose 5.5% from a year ago to $169.6 billion, the retailer said Tuesday. Global operating income rose 8.2% to $6.7 billion, up from $6.2 billion year over year. Net sales in the U.S. rose 5% to $114.9 billion, up year over year from $109.4 billion. U.S. comparable sales also rose 5.3%, excluding fuel sales. E-commerce sales rose 27% globally and 22% in the U.S., led in part by store-fulfilled pickup and delivery and the company's marketplace. Consolidated operating income grew 8.2% to $500 million on higher gross margins, growth in membership income and reduced losses in e-commerce. The company raised its full-year guidance and now expects net sales to increase 4.8% to 5.1%, up from a prior forecast of a 3.75% to 4.75% uptick. This was clearly a strong quarter and the changes we've been working on for years are continuing to bear fruit, McMillion said. According to Rainey, the popularity of expedited delivery has resulted in more than 30% of customer orders coming from people who elected to pay a convenience fee to receive their delivery in less than three hours or even less than one hour. Walmart's U.S. marketplace grew 42% in Q3, Rainey said, and the company has now seen more than 30% growth for the last five quarters. The company said the number of sellers on the platform continues to grow by double digits and its marketplace SKU count has nearly reached 700 million items. Additionally, that general merchandise also performed better in Q3, delivering a low single digit gain in comparable sales, is another positive for the quarter, Neil Saunders, managing director of GlobalData, said in emailed comments.
