Starbucks, a leading coffee giant, announced on Tuesday that Cathy Smith, the chief financial officer of department store chain Nordstrom, will be stepping into the role of finance chief at Starbucks next month. This strategic appointment follows the departure of Rachel Ruggeri, Starbucks' current finance head.
Smith brings with her a wealth of experience from her previous roles as CFO at Target and Walmart International. Her deep understanding of retail, global operations, and expertise in turnaround strategies makes her a valuable addition to the Starbucks team. Starbucks’ CEO, Brian Niccol, expressed enthusiasm about collaborating with Smith as they strive to execute their 'Back to Starbucks' plan.
In an effort to ensure a smooth transition, Ruggeri will provide assistance during this period. In related news, Nordstrom confirmed Smith's exit in their earnings release, noting that she will officially depart after filing the company's Form 10-K for the fiscal year 2024, which is expected to be submitted within the next month.
A search for Smith's successor is already underway. Nordstrom recently reported a decrease in fiscal fourth-quarter net sales to $4.20 billion, representing a 2.1% decline year over year, while adjusted earnings per share saw an increase to $1.10 from $0.96 in the previous year, outpacing the consensus estimate on FactSet of $0.93.
Additionally, Starbucks has been working on organizational restructuring, announcing the elimination of 1,100 non-retail support partner roles and 'several hundred' unfilled positions to streamline operations. Earlier this year, Starbucks reported a 4% decline in global comparable store sales for its fiscal first quarter, while revenues remained relatively stable year over year at $9.4 billion.
The company's earnings per share experienced a decline of 23%, falling to $0.69. Currently, Starbucks stock is valued at $113.93, reflecting a decrease of $1.49 or 1.29%..