Retail
CEOs of Macy's, Kohl's and Nordstrom Make Tens of Millions of Dollars
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As earnings fell apart at Macy’s Inc. (NYSE: M), Kohl’s Corp. (NYSE: KSS) and Nordstrom Inc. (NYSE: JWN), their CEOs made tens of millions of dollars. The money was paid for 2015, when many of the problems began to take hold.
The fiscal years of the retailers are not traditional. The first quarter ended on April 30.
Nordstrom revenue ticked up slightly in the quarter to $3.19 billion, compared to the same period of last year. Net earnings dropped to $46 million from $128 million. The retailer’s store count grew from 303 to 329, inexplicably. As is true with all retailers that lose money, or that scratch out tiny profits, some locations have to lose money. Nordstrom has not offset this with any meaningful e-commerce sales. Because of these factors, the company’s stock began to plunge in October 2015. Three members of the Nordstrom family are the company’s co-presidents. Each made $2.6 million last year.
Macy’s is the worst case in terms of CEO compensation. Its chief executive, Terry J. Lundgren, made $11.6 million last year. The company’s stock started to plunge last August. In early January, Macy’s closed 36 stores. The company and its board must have considered the move for several months. Macy’s sales in the quarter that ended April 30 fell from $6.23 billion last year to $5.77 billion this year. Net income dropped from $193 million to $116 million. Guidance was ugly.
Kohl’s revenue in the fiscal first quarter dropped from $4.12 billion last year to $3.97 billion. Net income fell to $58 million from $127 million. Its guidance was as ugly as Macy’s. Kohl’s stock drop was similar to the other two retailers. CEO Kevin Mansell made $8.2 million last year. Kohl’s announced in March it would close 18 stores. That decision must have been started several months earlier.
Among the lessons from the disintegration of the Kohl’s, Macy’s and Nordstrom financial results is that it is good to be the CEO of any of the retailers.
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