{"id":11188,"date":"2023-09-13T12:35:57","date_gmt":"2023-09-13T12:35:57","guid":{"rendered":"https:\/\/prosfunds.com\/investing\/new-bloomingdales-ceo-tapped-by-parent-company-macys\/"},"modified":"2023-09-13T12:35:58","modified_gmt":"2023-09-13T12:35:58","slug":"new-bloomingdales-ceo-tapped-by-parent-company-macys","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=11188","title":{"rendered":"New Bloomingdale\u2019s CEO Tapped By Parent Company Macy\u2019s"},"content":{"rendered":"<div>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Key takeaways<\/h2>\n<ul>\n<li>Bloomingdale\u2019s has named its new CEO, Frenchman Olivier Bron, to take over from Tony Spring<\/li>\n<li>Spring will move into a new role as parent company Macy\u2019s CEO, with Jeff Gennette set to retire next year<\/li>\n<li>Macy\u2019s stock climbed as much as 2% at the new CEO news &#8211; the share price has cratered 42.5% so far this year<\/li>\n<\/ul>\n<p>Macy\u2019s-owned Bloomingdale\u2019s has tapped Frenchman Olivier Bron to be its next CEO after a changing of the guard at the parent company. The move comes as Bloomingdale\u2019s has suffered falling sales and footfall thanks to the macroeconomic environment, which is seeing the retail sector struggle for its life.<\/p>\n<p>The move breaks a decades-long chain of hiring internally for Bloomingdale\u2019s CEOs, so perhaps the luxury department store is looking to switch things up with this latest executive hire. With the global luxury market only gaining momentum in the post-pandemic era despite the rest of retail slowing down, an international CEO makes a lot of sense.<\/p>\n<p>Here\u2019s the lowdown on the man taking up the top job at Bloomingdale\u2019s and the long-term potential for the department store chain for investors.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Who is the new Bloomingdale\u2019s CEO?<\/h2>\n<p><fbs-ad position=\"inread\" progressive=\"\" ad-id=\"article-0-inread\" aria-hidden=\"true\" role=\"presentation\"><\/fbs-ad><\/p>\n<p>Olivier Bron has been announced as upscale department store Bloomingdale\u2019s new CEO, replacing veteran Tony Spring, who became CEO-elect of the parent company Macy\u2019s back in March. Macy\u2019s CEO, Jeff Gennette, is retiring in February next year.<\/p>\n<p>French national Bron has deep experience in the retail sector, having been the CEO of Central and Robinson department stores in Thailand for the last two years. Before that, he was COO of the luxury department store group Galeries Lafayette (basically the fanciest store in France). He\u2019s expected to start the new role in November.<\/p>\n<p>It\u2019s the first time since 1991 that Bloomingdale\u2019s has hired an outside executive for the CEO position. Of the appointment, Bron said he was a \u201clong-time admirer of the brand\u201d and that he \u201clooked forward to building on the team\u2019s momentum across Bloomingdale\u2019s, including new store formats and continued digital expansion\u201d.<\/p>\n<p>Spring commented Bron\u2019s \u201cextensive international retail career and deep knowledge of the luxury market will be invaluable as we pursue additional opportunities for growth\u201d.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">Bloomingdale\u2019s and Macy\u2019s latest financial performance<\/h2>\n<p>Born joins the company at a difficult time for the retail industry in the U.S. Bloomingdale\u2019s and its parent company Macy\u2019s haven\u2019t been immune to the economic slowdown and pullback on consumer spending. In its latest quarterly earnings report, Macy\u2019s recorded adjusted earnings of 26 cents a share, down from last year\u2019s result but still better than Wall Street\u2019s prediction of 14 cents a share.<\/p>\n<p>Sales told a similar story, falling 8% from last year to $5.13 billion but still surpassing analysts&#8217; consensus estimates of $5.07 billion. Comparable-store sales dropped across Macy\u2019s and Bloomingdale\u2019s locations by 9.2% and 2.7%, respectively, as customers bought fewer handbags, men\u2019s clothing and dresses. However, Macy\u2019s beauty brand Bluemercury saw same-store sales rise by 5.8%.<\/p>\n<p>In a sign of the times, credit card delinquencies increased as Macy\u2019s \u201cother revenue\u201d category declined by $84 million. The company said the loss in credit card revenue \u201cwas faster than planned\u201d since the first quarter.<\/p>\n<p>However, Macy\u2019s reaffirmed its financial forecasts for annual sales and earnings, with the department store chain expecting net sales of $22.8 billion to $23.2 billion and earnings between $2.70 and $3.20.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">What\u2019s on the cards for Bloomingdale\u2019s under Bron\u2019s leadership?<\/h2>\n<p>Hiring an outside international CEO does imply Bloomingdale\u2019s wants to focus more on growth and breathe new life into the company. The days of the massive brick-and-mortar department store are likely numbered, so the high-end chain is focused on diversifying its real estate.<\/p>\n<p>Bloomingdale\u2019s has experimented with opening smaller branches, called Bloomie\u2019s, with two already open and another planned in Seattle &#8211; a new market for the company. The brand also has 20 outlet stores open across the U.S.<\/p>\n<p>Macy\u2019s has also tried to modernize its offering by introducing its own-brand, more affordable label, On 34th, in July. The brand, which sells women\u2019s clothing, is one of four private brands Macy\u2019s is launching by the end of 2025. The company is also switching up its existing label brands line-up, including adding Under Armour and Nike back into the fold to benefit from the rise in athleisure.<\/p>\n<h3 class=\"subhead3-embed color-body bg-base font-accent font-size text-align\">The global luxury sector is gaining strength<\/h3>\n<p>In terms of its international reach, Bloomingdale\u2019s has locations in Dubai and Kuwait. With a CEO with international luxury experience at the helm, it\u2019s a no-brainer to expand the brand\u2019s reach into new markets like Europe and Asia.<\/p>\n<p>Although the luxury sector in the U.S. is flagging, the global opportunity is one Bloomingdale\u2019s will be keen to capitalize on. This year, a June report from management consultancy Bain found that the global luxury market is set to grow by between 5% and 12% year-on-year in 2023.<\/p>\n<p>The global luxury market is expected to hit between \u20ac360 and \u20ac380 billion in value in 2023 alone, up from \u20ac345 billion last year. Bain predicts that steady growth will see the sector hit \u20ac530 and \u20ac570 billion by 2030 &#8211; over double its value from 2020.<\/p>\n<p>Key growth regions are expected to be Europe and Asia, especially if China\u2019s economic recovery gets started after the slump it\u2019s seeing. Hong Kong and Macau have already seen an increase in luxury spending since China reopened after lockdowns, and the report predicts Japan also to be a rising star. That\u2019s some serious potential for Bloomingdale\u2019s new CEO to tap into.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">How did Wall Street take the news?<\/h2>\n<p>Parent company Macy\u2019s share price was up as much as 2% higher during Tuesday trading after the news broke but only ended up closing 0.6% higher at $11.56.<\/p>\n<p>The stock price may also have been aided by venture capital firm Appaloosa LP increasing its position in Macy\u2019s by 0.8% during the first quarter, according to a new SEC filing. Macy\u2019s now comprises 5.5% of Appaloosa\u2019s portfolio and is its seventh-largest holding.<\/p>\n<p>The stock has had a rough ride so far in 2023. It\u2019s lost 42.5% of its value since the start of the year; even though Macy\u2019s beat expectations with its latest quarterly earnings, the share price still fell 10% at the time as pessimism about the retail sector sank in. In comparison, the S&amp;P 500 has gained 16.7% this year.<\/p>\n<h2 class=\"subhead-embed color-accent bg-base font-accent font-size text-align\">The bottom line<\/h2>\n<p>Bloomingdale\u2019s decision to appoint an international outsider clearly indicates the company wants to do things a little differently. It\u2019s a strategy that makes sense, given the flagging retail opportunity in the U.S. &#8211; but it works out even better when you factor in the global luxury market and the opportunities there.<\/p>\n<p>Investors seemed relatively optimistic about the new CEO, as well, which is a good sign that Bloomingdale\u2019s and Macy\u2019s are on the right path with making changes. If the brand can be brave and enter new markets successfully, there\u2019s a lot of potential for Bloomingdale\u2019s long-term stock growth.<\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.forbes.com\/sites\/qai\/2023\/09\/13\/new-bloomingdales-ceo-tapped-by-parent-company-macys\/\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key takeaways Bloomingdale\u2019s has named its new CEO, Frenchman Olivier Bron, to take over from Tony Spring Spring will move into a new role as parent company Macy\u2019s CEO, with Jeff Gennette set to retire next year Macy\u2019s stock climbed as much as 2% at the new CEO news &#8211; the share price has cratered [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":11189,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[32],"tags":[],"class_list":{"0":"post-11188","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>New Bloomingdale\u2019s CEO Tapped By Parent Company Macy\u2019s | Prosfunds<\/title>\n<meta name=\"description\" content=\"Key takeaways Bloomingdale\u2019s has named its new CEO, Frenchman Olivier Bron, to take over from Tony Spring Spring will move into a new role as parent\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/prosfunds.com\/?p=11188\" 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