Macy’s Mixed Up Day; Uber Pumped for Some IPO Magic; Madoff Victims Rejoice. Well, Maybe Not.

It could have been worse…

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Image courtesy of Sira Anamwong/FreeDigitalPhotos.net

There’s good news. And there’s bad news. Well, for Macy’s anyway. So let’s start with the bad because, why not. The department store chain just released its third-quarter earnings and very unhappily reported that comparable same-store sales fell 3.6%. That’s not even the bad part. What’s worse is that analysts expected those sales to fall, but only by 2.6%. This latest quarter marks Macy’s 12th consecutive quarter of straight declines and these dismal results come smack in the middle of Macy’s turnaround plan called “North Star.” To be fair, however, it was expected that this turnaround plan wasn’t going to change numbers overnight. As for the good news, Macy’s profit rate went up, helped by cost-cutting measures and store closures. That helped the retailer take in $36 million, almost double what it took in last year at this time. Online sales also went up by so much, that it almost took the sting out of the fall in comparable sales. Almost. So naturally, shares went up today, as well. A smidge. But those shares were at the highest point they had been in nine months. Too bad, though, they are still down more than 50% in the last twelve months.

IPWhoa!

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Image courtesy of Sira Anamwong/FreeDigitalPhotos.net

Uber is almost ready to make its big Wall Street debut.  Almost. The company’s new CEO, Dara Khosrowshahi, wants to make that happen by 2019. With a $70 billion valuation, Uber is the most highly-valued private company in the world. According to Khosrowshahi, “We have all of the disadvantages of being a public company, as far as the spotlight on us, without any of the advantages of being a public company.” Even Travis Kalanick, the ousted CEO but current board member, agrees. As for Kalanick, he’s not really gone and you can bet he won’t be forgotten. Not if he can help it anyway. IPO’s weren’t the only thing Khosrowshahi’s been discussing lately. Earlier this week, the CEO unveiled his own “cultural norms” for the company, and one of them goes a little something like this: “We do the right thing. Period.” A far cry from the climate under Kalanick that had a former employee write a scathing blog post detailing allegations of sexual harassment.  Which brings us to the much-discussed Soft Bank deal, where Uber is poised to give a very hefty 20% stake to the Japanese bank. For the right price, of course. Khosrowshahi insists the deal is really, truly going to happen. For real. It. Will. Happen. The primary issue being the price, because isn’t it always?

It’s about time…

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Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Thousands of victims of Ponzi Schemer Bernie Madoff are set to receive over $770 million in compesation for the money they lost. The $770 million is part of a $4 billion fund set up to compensate victims. And sure, that’s good news. Except for the fact that it took nine years to happen and much of those funds will only cover about 25% of the losses.  But guess what? It still counts as “the largest restoration of forfeited property in history.” Close to 25,000 checks will be mailed to victims, ranging from institutions to individuals in 49 states and 119 countries.  If you recall, Bernie Madoff was accused and found guilty of perpetrating a $65 billion Ponzi scheme. These days, the schemer of the century is chillaxin’ in Club Fed for the next 150 years.

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Harley’s Rough Ride on Wall Street; Madoff Victims Pay Day; Amazon Wants You. Really.

Rough riding…

Image courtesy of sritangphoto/FreeDigitalPhotos.net

Image courtesy of sritangphoto/FreeDigitalPhotos.net

Harley-Davidson is no match for Wall Street as the all-American bike gets whipped by yet another rough quarter.  With sales down 2.5% in the U.S. and another 1% worldwide, Harley-Davidson brass have made a brutal decision to cut a bunch of jobs and ship out 11,000 less bikes next year. Instead, the company will dish out $70 million to increase its 2016 marketing budget. The company is hoping (and presumably praying) that it can increase product and brand awareness. And get people to buy more bike, of course. But how is it even possible that a brand as iconic as Harley would need to do such a thing? While there’s no disputing that there’s nothing like a Harley, the company is facing increased competition from European and Asian bike makers, like Ducati, Royal Enfield and Triumph. Those companies are putting out some fierce machines, and in some cases, for a lot less money than a “hog.” The proof is that in the first nine months of the year, the number of registered bikes has surged 6.6%. Net income for Harley-Davidson came in at $140.3 million, a 6.5% decrease over last year’s $150 million. Harley added 69 cent per share when analysts predicted 78 cents instead. In fact, shares fell the most that they have in six years.  But that isn’t stopping Harley-Davidson from plans to open up 200 more dealerships abroad.

Lost and found…

Image courtesy of bplanet/FreeDigitalPhotos.net

Image courtesy of bplanet/FreeDigitalPhotos.net

It’s been seven years since Bernie Madoff’s evil Ponzi scheme unraveled. But today, more than 1,200 of his victims (there were way more than that) can sort of rejoice and look forward to recouping at least some of their lost funds. Irving Picard, the trustee who has been hard at working recouping money on behalf of the victims of the largest Ponzi scheme in U.S. history, has managed to release $1.5 billion from legal reserves. Victims who invested up to $1,161,000 can expect to get back about $1 million. Those who unfortunately invested more can expect to recoup 61 cents on the dollar.  Much of this money is coming from the widow of Madoff’s deceased alleged co-conspirator Jeffery Picower.  She agreed to turn over $7.2 billion of her late husband’s ill-gotten stash. Of course, some of that cash, approximately $1 billion, will also go towards covering all those enormous legal fees of the law firm handling this case. U.S officials have so far recovered about $11 billion from the $17 billion that was lost. As for Bernie Madoff, he’s hitting year 7 of a 150 year prison sentence.

Hire cause…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

If you’re looking to score some extra cash this holiday season then don’t let the New York Times get in your way and  dissuade you from applying for a job at Amazon. I bet Amazon is hoping the NYT doesn’t dissuade you either since the company is looking to hire 25,000 full-time employees and 100,000 part-time employees for the holiday season. While the company has always hired more people for this time of year, this time the digits are pretty epic in that they’ve never been this high. It should be duly noted that plenty of people who had been hired specifically for the holiday season were subsequently kept on as permanent employees.  The jobs will be primarily in the sorting and fulfillment facilities across the country.  But Amazon’s not the only game in town as Target, Wal-Mart, Macy’s, Kohl’s and a slew of other companies are also looking to amp up their workforces this holiday season. Just be sure not to ask Bo Olsen for a reference.