Latest news with #MarcMetrick
Yahoo
09-07-2025
- Business
- Yahoo
After a Year of High-stakes Financing, Saks Turns Back to High-stakes Retailing
The year since Saks and Neiman Marcus Group cut their landmark $2.7 billion deal has been dominated not by talk of a new luxury retail giant or a modern merchant force taking shape. Instead, it's been all about the rough and tumble of high-stakes corporate finance. On that score, it's been a story of quick and agile dealmaking that would be surprising or just unbelievable from almost anyone else but Richard Baker, executive chairman of what is now Saks Global. More from WWD From Sex Clubs to Castles, Latex to Upcycling, Berlin Fashion Week Had Something for Everyone Saks Global Bolsters Its Finances, Secures $600 Million in Commitments Saks Global Extends Partnership With NuOrder to Neiman Marcus and Bergdorf Goodman Consider this: There was the decade-long pursuit of Neiman Marcus. The unlikely deal, with the behind-on-its bills Saks parent Hudson's Bay Co. lining up Amazon, Salesforce and Apollo to buy the somewhat stronger Neiman Marcus. The surprisingly fast approval by antitrust regulators, the deterioration of the low-on-inventory Saks business and a pivot to a $2.2 billion bond sale that replaced Apollo, clearing the way to the close of the transaction two days before Christmas. And then things really got started. Hudson's Bay was spun off and went bankrupt, Saks and Neiman's vendors were thrown into a tailspin by a yearlong schedule to repay past due bills and 90-day payment terms on all shipments going forward. And bondholders — some of whom seem to haven't bothered to read some very important fine print — revolted when they learned their debt wasn't directly secured by the Saks Fifth Avenue flagship. Saks then lined up $350 million in new financing in May only to ditch that in favor of $600 million in financing last month from a group of bondholders jockeying for a better position in the capital structure. From the outside, the company has appeared to be lurching from one crisis to the next. And from the inside, it's seemingly been a nightmare. But last week, new money in hand, Saks made a crucial $120 million interest payment on the bonds. It's said to be paying vendors on time under the new terms and Marc Metrick, chief executive officer, has even floated the possibility of making back payments earlier than planned. 'As we progress over the next few months, if we see a return to what we believe to be normalized receipt flow, we plan to evaluate the possibility of accelerating the timeline to pay back past due balances to our brand partners,' Metrick told vendors in a memo last month that was obtained by WWD. At least for now, the Saks story is no longer a tale about financing. Everyone inside and out agrees that Saks has the money to get through this year and sources close to the company maintain that it has the financial wherewithal to last much longer even if Christmas doesn't turn out to be a blockbuster season. One source said Saks' outside auditors gave the company a clean bill of health — good for at least a year — after the $350 million in financing was lined up and now that's been upsized to a potential total of $600 million, giving it even more cushion. Right now, the future of Saks is not about its ability to wrangle investors or lenders, but the company's retail savvy and its ability to push what Metrick has called a 'reset' of luxury retail through an increasingly complicated retail market. 'All we heard about is 'We're running out of money,'' said Tim Hynes, global head of credit research at Debtwire, summing up the bondholder take on the company. ''We need money for inventory, we need money to make interest payments.' Money, money, money. So OK, we got you set up, you told us you needed this much money, now you show us that you know what to buy and you bought the right inventory and you know how to sell it to make a reasonable profit.' That's the trick in retail anyway — and one that requires finesse in good times and real skill in tough ones, like now when consumers are skittish and President Donald Trump's trade war is still disrupting supply. Big retail mergers are dicey to start with. 'Now, they have control of the best high-end retailers,' Hynes said. 'In theory it should work out. Nobody's going to open a new high-end retailer tomorrow. It's just not going to happen. So they got the market cornered. In theory, if anything's going to work, this should work. Everybody says, 'Rich people always have money, this should work out.' However, if you look at history, combining retailers has never worked out.' That point could be argued, kind of — the Federated-May mega merger worked for a time and changed the retail landscape, but that company, now Macy's Inc., is now morphing again for a new age. But nobody argues that Saks is working in a tough space. 'Department stores are not the best neighborhood to be operating in,' said Mickey Chadha, the Moody's Investors Service debt analyst who follows Saks. 'They're relying on cost cuts, layoffs, efficiencies between the two companies,' Chadha said. 'And that's all great. If you can accomplish that, you're definitely better for your bottom line. However, you have to grow, you have to grow. And their sales have been declining quite dramatically in the last couple of years. So if you don't grow, there's only so much you can do in synergies and cost cuts. 'This $600 million of new monies that we're talking about is great,' he said. 'It gives them more runway to get the ship back on course. But it's not going to be the end all. If they continue to burn cash, that $600 million will then disappear again in the next 12 months, and then they'll need more capital. The holiday is going to be key for them.' Holiday, next year and beyond relies not on raising more money or courting investors, but on making the big Saks reset work. It's a complicated bit of work for Metrick. Saks Global is combining operations for the two nameplates, reestablishing trust with vendors, cementing the new payment terms, expanding through a luxury shop on Amazon and looking at brands in new ways with its Authentic Luxury Group joint venture. Somewhere in there could be a bright future for the idea of the luxury department store, which has suffered blow after blow since the bankruptcy of Barneys New York in 2019. There is no shortage of brands with real gripes against Saks as it just now starts paying bills due years ago. But some luxury labels are also sensing new potential ahead — and brands both large and small say Saks Global is vital to their businesses and its survival is key. One adviser to independent designer brands said they are getting more excited about Saks' shop on Amazon, which launched with 50 brands and is said to be bringing new shoppers into the business. 'Are we going to actually see more sales through e-commerce than we're seeing in the physical stores?' the adviser wondered. 'How does the retail footprint shrink or change?' That refocuses the narrative around Saks back to where it really should be — its retail fortunes. The Bottom Line is a business analysis column written by Evan Clark, deputy managing editor, who has covered the fashion industry since 2000. It appears periodically. Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-06-2025
- Business
- Yahoo
EXCLUSIVE: Saks Global Broadens Emily Essner's Role; Mary McGreevy Named Chief Stores Officer
Saks Global has widened the role of Emily Essner, president and chief commercial officer, and has promoted Mary McGreevy to chief stores officer for Saks Fifth Avenue and Neiman Marcus. The changes stem from a 'strategic realignment' to integrate the Saks Fifth Avenue and Neiman Marcus store teams into the central commercial organization, Saks Global disclosed Friday to WWD. More from WWD Saks Global Team to Outline Men's Strategy at Pitti Uomo Saks Global Update: What's on the Minds of Vendors Saks to Open Isabel Marant Pop-up at Flagship With the change, all customer-facing functions for Saks Fifth Avenue and Neiman Marcus, including brand partnerships and buying, merchandise planning, marketing, digital, commercial analytics and customer insights — and now store experience as well — will be part of the Saks Global commercial organization, led by Essner. The switch has led to some other key executive changes. Mary McGreevy has been named chief stores officer for the Saks Fifth Avenue and Neiman Marcus stores, reporting to Essner. McGreevy previously served as regional vice president, South region, for Saks Fifth Avenue and Neiman Marcus. Larry Bruce, president of stores for Saks Fifth Avenue and Neiman Marcus, is leaving the company. McGreevy had reported to Bruce. 'We are continuing to execute on our integration strategy, and with that, we are creating a more unified approach in how we serve customers,' said Marc Metrick, chief executive officer of Saks Global, in a statement Friday. 'By integrating our store teams into the commercial function, we will be better positioned to capitalize on opportunities to better serve our customers, driving growth for our business and that of our brand partners.' Essner reports to Metrick. Essner said in a statement: 'Mary is a results-oriented leader with an impressive track record of delivering customer-centric strategies that accelerate performance and drive impact across our stores. Building on the solid foundation laid by Larry, she brings a distinctive blend of visionary thinking, entrepreneurial spirit and a deep understanding of the evolving needs of today's luxury consumer. With her ability to cultivate high-performing teams and elevate the customer experience, I'm confident she is the right leader to oversee our Saks Fifth Avenue and Neiman Marcus stores in this next chapter and deliver on our ambitious goals.' 'My focus is on supporting and enabling our teams to curate tailored customer experiences that fuel growth,' McGreevy stated. Bruce is credited with pioneering Saks Fifth Avenue's clienteling program and sharpening the company's focus on differentiated client experiences to create loyalty and customer value. Prior to his role overseeing the Saks Fifth Avenue and Neiman Marcus stores, he served as president of the Saks Fifth Avenue stores. 'Larry has played a pivotal role in shaping our business over his 22-plus year tenure,' Metrick said. 'During this time, he has been a wonderful thought partner and a constant source of support. He has shown great leadership during this important integration period for our company, ensuring stability, continuity and a strong foundation for our future as Saks Global.' McGreevy has more than two decades of strategic customer-focused and operational leadership at Saks and elsewhere. Her role has spanned business development, customer engagement and cross-functional partnerships with key brand stakeholders. Her new role does not include Bergdorf Goodman, which has a separate buying and stores team from Saks Fifth Avenue and Neiman Marcus. Since joining Neiman Marcus in 2018, McGreevy has held several leadership spots, where she has played a pivotal role in driving performance across its NorthPark flagship in Dallas and other key markets. 'She has led complex store openings and renovations, evolved selling structures and built high-performing teams that consistently exceeded financial targets,' Saks Global indicated in its statement. 'Earlier in her career, Mary spent over 15 years at Bloomingdale's, where she led store openings and spearheaded initiatives that reshaped the customer experience and selling model for the brand. Her early experience in merchandising, buying and sales continues to inform her leadership style.' Essner was promoted to president and chief commercial officer at Saks Global in December, when Saks Global consummated its $2.7 billion deal to buy the Neiman Marcus Group. Before that, Essner was chief marketing officer for Saks Fifth Avenue for four-and-a-half years, and earlier Saks's senior vice president of marketing and digital for more than three years. Earlier in her career, she was vice president of corporate strategy at the Hudson's Bay Co., director of corporate strategy at Saks Fifth Avenue and a senior associate at McKinsey & Co. Through the integrations of its operations, Saks Global, while looking to operate more efficiently and respond to trends and customer needs faster, is seeking to cut about $600 million in annual costs. This spring, approximately 550 workers were terminated, cutting 3 percent of Saks Global's total workforce following cuts made earlier in the year. Another 500 jobs were also eliminated when Saks closed an owned fulfillment center in Tennessee recently. Best of WWD Macy's Is Closing 66 Stores in 2025 — Here's the List, Live Updates Inside the Demise of Lord & Taylor COVID-19 Spikes Elevate Retail Concerns
Yahoo
17-06-2025
- Business
- Yahoo
Saks Global Report: Intent to Spend on Luxury Softens
America's luxury consumers are down on the economy — and that's no surprise to Saks Global. On Tuesday, the retailer detailed the results of the latest Saks Global Luxury Pulse survey to WWD, getting into the heads of luxury consumers. The survey found that optimism about the economy continues to decline, driven by economic uncertainty and market volatility. More from WWD Saks Said to Pursue Joint Venture to Expand Bergdorf Goodman Saks Global Hits 'Turning Point,' According to CEO Marc Metrick Saks Secures $350M in Financing to 'Fortify' Balance Sheet Fielded from April 24 to April 28, the Luxury Pulse indicated that America's affluent have been affected by market volatility and flip-flopping tariffs, are worried about a possible recession and are increasingly discerning when spending on luxury. The quarterly survey gathered responses online from 1,248 U.S.-based luxury consumers over age 18 during a time when many of the tariffs in U.S. President Donald Trump's trade war had been paused, starting a 90-day period of negotiation. Among luxury consumers, the top five concerns are the general social and political climate, a potential recession, personal financial security, stock market volatility and ongoing global conflict. 'We've been doing these surveys for a few years and this is another one of those market declines,' said Emily Essner, president and chief commercial officer of Saks Global. 'This is a meaningful decline.' But the situation isn't entirely bad. 'While we saw a decline in how consumers felt about the macro environment, we also saw optimism about their personal finances.' The luxury spending is more tied to how consumer feel about the macro environment, rather than their personal finances, she said. In addition, 'When we think about higher-income spenders, they are last in, first out,' Essner said, meaning, they're the last group to put the reins on spending during challenging economic times, and the first to rev up their spending when the economy rebounds. 'There is still a desire to spend for moments that are special,' Essner said, referring to holidays, birthdays and other special occasions. While the survey showed economic sentiments declining, Essner did suggest that attitudes could have changed for the better since the survey was taken in April. Saks' next Luxury Pulse, to be taken during the summer, could tell a different story from the latest one. 'The most important thing is to understand where their heads are at,' Essner said. The Luxury Pulse, she said, is an important tool for that, helping Saks executives plan and forecast their business. Given the shifting attitudes among consumers, Essner said the company has to work harder to convey the value, timeliness and high quality of the fashion products it sells and to emphasize that much of the assortment contains 'investment pieces' meaning they'll last well into the future and are not trendy. In addition, given the state of mind of the luxury consumer, personalization has become an even more important part of the Saks Global strategy, Essner said. Asked if Saks will be more promotional, Essner replied, 'We wouldn't anticipate significantly changing our approach.' While acknowledging that consumers do get more motivated to shop during strong promotions, Essner said that, 'In the end, our strategy is to be decreasing promotionality overall,' and to be more 'targeted' with promotions. Essner also acknowledged that given the dynamic nature of the macro environment and consumer attitudes, planning becomes more challenging. 'It's definitely hard to think six to eight months down the road,' she said. She also said there were no indicators that luxury consumers were shifting discretionary dollars to areas such as travel and entertainment at the expense of fashion. Among the key findings from the Luxury Pulse: The luxury consumer's intent to spend on luxury has softened compared to recent surveys, with 47 percent planning to spend the same or more on luxury in the next three months. This represents the lowest level since tracking by Saks began in April 2023, and a decline of 11 percentage points compared with the prior survey. Twenty-eight percent of respondents reported feeling optimistic about the economy, which is a decline of 13 percentage points compared with the prior survey fielded in January 2025 and a decline of 17 percentage points compared with the survey fielded in April 2024. Luxury consumers are feeling significantly less calm about the economy, with 32 percent feeling calm, representing a decline of 13 percentage points compared with the prior survey and down 22 percentage points compared with the same time last year. Despite a decrease in optimism about the economy, the majority of luxury consumers remain optimistic about their personal finances. Sixty-seven percent of those with an income of $200,000 or more said they feel prepared when it comes to their personal finances. 'As the expert on the luxury consumer, we know that uncertainty in the macro environment impacts their intent to spend on luxury. With that in mind, we believe it's our responsibility as the largest multibrand luxury retailer in the world to adapt to the uncertainty by demonstrating the value of our experience and quality of our luxury assortment,' Essner said in a prepared statement. Formerly known as the Saks Luxury Pulse, following the completion of Saks Global's acquisition of Neiman Marcus and Bergdorf Goodman in December, the survey's scope broadened and it was rebranded as the Saks Global Luxury Pulse. Revenues at the Saks banner fell 20 percent last year, which the company blamed on 'disrupted inventory flow' while Neiman Marcus was down 2 percent. Saks Global also includes the Saks Off 5th offprice business. Best of WWD Macy's Is Closing 66 Stores in 2025 — Here's the List, Live Updates Inside the Demise of Lord & Taylor COVID-19 Spikes Elevate Retail Concerns Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-06-2025
- Business
- Yahoo
Saks Global Report: Intent to Spend on Luxury Softens
America's luxury consumers are down on the economy — and that's no surprise to Saks Global. On Tuesday, the retailer detailed the results of the latest Saks Global Luxury Pulse survey to WWD, getting into the heads of luxury consumers. The survey found that optimism about the economy continues to decline, driven by economic uncertainty and market volatility. More from WWD Saks Said to Pursue Joint Venture to Expand Bergdorf Goodman Saks Global Hits 'Turning Point,' According to CEO Marc Metrick Saks Secures $350M in Financing to 'Fortify' Balance Sheet Fielded from April 24 to April 28, the Luxury Pulse indicated that America's affluent have been affected by market volatility and flip-flopping tariffs, are worried about a possible recession and are increasingly discerning when spending on luxury. The quarterly survey gathered responses online from 1,248 U.S.-based luxury consumers over age 18 during a time when many of the tariffs in U.S. President Donald Trump's trade war had been paused, starting a 90-day period of negotiation. Among luxury consumers, the top five concerns are the general social and political climate, a potential recession, personal financial security, stock market volatility and ongoing global conflict. 'We've been doing these surveys for a few years and this is another one of those market declines,' said Emily Essner, president and chief commercial officer of Saks Global. 'This is a meaningful decline.' But the situation isn't entirely bad. 'While we saw a decline in how consumers felt about the macro environment, we also saw optimism about their personal finances.' The luxury spending is more tied to how consumer feel about the macro environment, rather than their personal finances, she said. In addition, 'When we think about higher-income spenders, they are last in, first out,' Essner said, meaning, they're the last group to put the reins on spending during challenging economic times, and the first to rev up their spending when the economy rebounds. 'There is still a desire to spend for moments that are special,' Essner said, referring to holidays, birthdays and other special occasions. While the survey showed economic sentiments declining, Essner did suggest that attitudes could have changed for the better since the survey was taken in April. Saks' next Luxury Pulse, to be taken during the summer, could tell a different story from the latest one. 'The most important thing is to understand where their heads are at,' Essner said. The Luxury Pulse, she said, is an important tool for that, helping Saks executives plan and forecast their business. Given the shifting attitudes among consumers, Essner said the company has to work harder to convey the value, timeliness and high quality of the fashion products it sells and to emphasize that much of the assortment contains 'investment pieces' meaning they'll last well into the future and are not trendy. In addition, given the state of mind of the luxury consumer, personalization has become an even more important part of the Saks Global strategy, Essner said. Asked if Saks will be more promotional, Essner replied, 'We wouldn't anticipate significantly changing our approach.' While acknowledging that consumers do get more motivated to shop during strong promotions, Essner said that, 'In the end, our strategy is to be decreasing promotionality overall,' and to be more 'targeted' with promotions. Essner also acknowledged that given the dynamic nature of the macro environment and consumer attitudes, planning becomes more challenging. 'It's definitely hard to think six to eight months down the road,' she said. She also said there were no indicators that luxury consumers were shifting discretionary dollars to areas such as travel and entertainment at the expense of fashion. Among the key findings from the Luxury Pulse: The luxury consumer's intent to spend on luxury has softened compared to recent surveys, with 47 percent planning to spend the same or more on luxury in the next three months. This represents the lowest level since tracking by Saks began in April 2023, and a decline of 11 percentage points compared with the prior survey. Twenty-eight percent of respondents reported feeling optimistic about the economy, which is a decline of 13 percentage points compared with the prior survey fielded in January 2025 and a decline of 17 percentage points compared with the survey fielded in April 2024. Luxury consumers are feeling significantly less calm about the economy, with 32 percent feeling calm, representing a decline of 13 percentage points compared with the prior survey and down 22 percentage points compared with the same time last year. Despite a decrease in optimism about the economy, the majority of luxury consumers remain optimistic about their personal finances. Sixty-seven percent of those with an income of $200,000 or more said they feel prepared when it comes to their personal finances. 'As the expert on the luxury consumer, we know that uncertainty in the macro environment impacts their intent to spend on luxury. With that in mind, we believe it's our responsibility as the largest multibrand luxury retailer in the world to adapt to the uncertainty by demonstrating the value of our experience and quality of our luxury assortment,' Essner said in a prepared statement. Formerly known as the Saks Luxury Pulse, following the completion of Saks Global's acquisition of Neiman Marcus and Bergdorf Goodman in December, the survey's scope broadened and it was rebranded as the Saks Global Luxury Pulse. Revenues at the Saks banner fell 20 percent last year, which the company blamed on 'disrupted inventory flow' while Neiman Marcus was down 2 percent. Saks Global also includes the Saks Off 5th offprice business. Best of WWD Macy's Is Closing 66 Stores in 2025 — Here's the List, Live Updates Inside the Demise of Lord & Taylor COVID-19 Spikes Elevate Retail Concerns
Yahoo
14-06-2025
- Business
- Yahoo
Saks Global says it's back on track with vendors, won't close stores
This story was originally published on Retail Dive. To receive daily news and insights, subscribe to our free daily Retail Dive newsletter. Saks Global has mostly smoothed things over with vendors and has no plans to close stores, CEO Marc Metrick told BMO Capital Markets analysts at a recent meeting, according to a Friday client note. The analysts led by Managing Director Simeon Siegel said this suggests 'they are already in the best locations and like their existing fleet.' That includes 33 Saks Fifth Avenue stores, 86 off-price Saks Off 5th stores, 36 Neiman Marcus stores, five off-price Neiman Marcus Last Call stores and Bergdorf Goodman's Manhattan flagship. The luxury department store conglomerate didn't immediately respond to an email asking whether this means the downtown Neiman Marcus store in Dallas will remain open beyond 2025 after all. Earlier this year, after announcing that iconic store would close March 31, the company waged a weeks-long battle with city leaders who worked to save it. Ultimately Saks Global agreed to keep the store running through the holidays. The breakdown in relationships with suppliers stemmed from chronic issues with late payments. An unconventional payment plan devised earlier this year signaled to some analysts that the company was struggling to meet its obligations. Metrick told BMO that most vendors agreed to the terms and that Saks Global 'is making progress on outstanding balances.' The company in recent days picked up $350 million in financing commitments that analysts have said likely rescued its ability to stock up for the holiday. Speaking with BMO, Saks executives 'expressed confidence in their liquidity,' on the way to realizing its five-year goal of $600 million in synergies, with $285 million in run-rate synergies by the end of this fiscal year. That five-year target is about $100 million higher than the original target, and the 2025 run-rate is nearly doubled, per BMO. 'While acknowledging macro volatility, Metrick expressed clear excitement and confidence in his long-term business opportunities, the luxury business at large, and expressed confidence in their liquidity and vendor relationships,' Siegel said in the Friday note. Luxury brands may be less optimistic about Saks, however, according to a report from HSBC Global Research analysts led by Erwan Rambourg. New York City-based luxury brand managers have just two major concerns, they found: 'how the well-publicised financial travails of Saks Global will end and the end game for tariffs.' 'The outlook otherwise seems solid,' Rambourg said in emailed comments Thursday. Saks Global appears to be banking on a healthy recovery for luxury consumers — who by Saks' own measure seemed quite agitated earlier in the year — as well as on the strength of the luxury market longer term. BMO cited more up-to-date research from Saks, which found that a third of its customers making $200,000 or more are less confident about the economy in general but more confident about their own situation. These consumers are concerned about the social/political climate above all, then a recession and stock market volatility, per that report. At least for the moment, the stock market is leaning their way, and therefore in Saks Global's favor. In May and June, U.S. equity markets have broadly recouped earlier losses, according to HSBC. 'Of course there are other topics dominating headlines in the US at present, but it seems that luxury consumers are driven more by short-term measures of wealth, such as the value of their 401k pension plans,' Rambourg said. Tariffs and higher prices are not top worries for Saks' customers, per its research. BMO analysts estimate that about 80% of its goods come from Europe, and Saks Global told them that high-single digit percentage price hikes, which they characterized as 'normal,' would mostly offset increased import levies. Recommended Reading Beyond to acquire Kirkland's IP for $5M — and plans to license it back Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
