Diversity And Inclusion In Macy's DNA For Years, But More Still Needs To Be Done, Says CEO Jeff Gennette

The CEO of Macy’s Inc. M Jeff Gennette, has highlighted the importance of diversity, inclusion, and the need to support the retailer’s minority staff.

What Happened

Appearing on CNBC’s “Closing Bell” on Tuesday, Gennette talked about the expectations of the people who work for the company, saying, “We are going to be highly respectful of their needs.”

After holding a virtual town hall with 10,000 Macy’s employees, the CEO said, “This time is very different.” Recognizing the abundance of “black talent and the need to enable it,” Gennette remarked, “We are going to take action.”

“I know we have to find a way to scale this [African-American] talent in ways that we are reaching more Americans,” the CEO added.

Gennette also touched on the company’s recovery, calling it “gradual.” He revealed that the company plans to reopen all its stores.

Why It Matters

Macy’s joins other retail giants, such as Nike Inc. NKE, who have spoken out about racism. Business leaders have expressed support for minorities pledging donations.

Genette revealed to CNBC that Macy’s would be a “smaller, more leveraged company” going forward, as coronavirus pandemic lockdowns end, and employees return to work.

Macy’s is closing 125 stores over the next three years and cutting 2,000 corporate jobs.

On Monday, Macy’s announced that it had raised $4.5 billion in a new financing round, borrowing against its real estate assets and through a senior secured notes issue.

On Tuesday, the retailer posted its preliminary first-quarter results, which indicated a loss of $2.03 per share, beating expectations of a $2.33 per share loss.

Sales declined 45% year-over-year, and debt rose 17% as Macy’s grappled with the effects of the pandemic. 

Macy’s Price Action

Macy’s shares traded 1.69% lower at $8.72 in the after-hours session on Tuesday. The shares had closed the regular session 7.12% lower at $8.87.