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Macy’s to claw back executive bonuses due to accounting scandal

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Bloomberg

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April 2, 2025

Macy’s Inc. is clawing back more than $600,000 in cash bonuses from executives after an accounting scandal led to inflated pay. 

Bloomberg

The department-store operator tied executives’ cash bonuses to an earnings metric that turned out to be overstated by around $81 million in 2023, Macy’s said in a securities filing on Tuesday evening. 

That meant Macy’s overpaid executives by $609,613 as of the end of 2024, the company said. Some of that has already been clawed back, so the outstanding amount stood at $352,093 as of April 1, it added. 

The company’s compensation committee said it “will seek to recover the remaining amount of the erroneously awarded compensation” from executives. Macy’s didn’t name the people whose bonuses will be affected. A spokesperson declined to comment. 

Macy’s also said Tuesday its chief financial officer was leaving. The company said it was replacing him with his counterpart at Capri Holdings Ltd., Thomas J. Edwards, and said the move was part of its plan to return to long-term, profitable growth.

Under US Securities and Exchange Commission rules, public companies are required to assess whether they need to revoke corporate bonuses if they uncover accounting errors that miscalculated past profits. 

In November, Macy’s delayed an earnings release and then issued a lower profit outlook after an investigation found an employee intentionally hid more than $150 million in delivery expenses from the fourth quarter of 2021 through the third quarter of 2024.

The probe didn’t uncover evidence of missing cash or unpaid vendors and instead pointed to accounting errors by the former employee, who also falsified documents to hide the problem, according to the company. 
 



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Pepe Jeans maximises British heritage for spring campaign, collection

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Pepe Jeans London is once again making the most of its British heritage for its latest marketing campaign. The label, which was founded in London but is now owned by Madrid-based AWWG, has for spring 2025 drawn inspiration from classic collegiate cities across the UK. 

“With their warm sandstone buildings and dark wood interiors, these iconic locations provide the perfect backdrop for a collection that blends timeless charm with the confident-cool attitude synonymous with Pepe Jeans”, we’re told.

This season, the spotlight is on denim lifestyle, with a fresh take on cream and white denim as the key focus. 

The campaign shoot, dubbed Very Spring, Very Pepe, features actress and entrepreneur Kriti Sanon and Canadian model Simon Nessman who “bring the collection’s vision and inspiration to life capturing the essence of the UK’s classic collegiate charm combined with the relaxed style of Pepe Jeans”. 

The pieces featured include signature tencel shirts and jeans in Pepe’s light wash, while blue and white stripes bring a seasonal spring touch to knitwear and shirts for both men and women. 

The collection also introduces college-inspired casual looks that work as transitional pieces to bridge spring and summer. That means lightweight jackets, polos, and linen shirts.

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Desigual closes fiscal year 2024 with €332 million in revenue

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Translated by

Roberta HERRERA

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April 16, 2025

Desigual ended its 2024 fiscal year with a turnover of €332 million, driven primarily by an increase in international sales and the strong performance of its online channel. Pretax profit reached €3.1 million, a slight increase from the €3.04 million recorded in the 2022 fiscal year—the most recent period with available data. However, during that same 2022 period, Desigual had reported total sales of €379 million, marking a 12% decrease in revenue for 2024.

The exterior of the Barcelona-based brand’s flagship store in Shanghai – Desigual

Online sales played a pivotal role, accounting for 35% of the company’s total revenue—or €116 million. This marks a significant rise from 2019, when e-commerce represented just 19% of overall revenue. The channel’s growth has been largely fueled by Desigual’s recent entry into major global e-commerce platforms such as Macy’s and Nordstrom.

By market, the brand posted solid growth in the United States and Japan, with sales increasing by 7% and 9%, respectively. Meanwhile, the EMEA region (Europe, the Middle East and Africa) delivered a strong performance, registering an 11% year-over-year increase.

These results reaffirm Desigual’s transformation strategy, first introduced in 2019 just before the pandemic. The brand has since repositioned itself with a more contemporary and fashion-forward aesthetic, aimed at attracting a younger consumer base. As part of this renewed identity, Desigual recently named Madrid-born actress Ester Expósito as its global ambassador for the full duration of 2025.

Another key growth driver was Desigual’s continued investment in its international retail network. Over the past five years, the company has allocated €98 million to restructure and expand its physical store footprint. A major milestone in this strategy was the opening of its first flagship store in Shanghai in October 2024—a pivotal move in its broader push into the Asian market, developed in collaboration with local partner E-Shine, active since 2022.

Founded in 1984 by Thomas Meyer, Desigual currently operates a commercial network of 282 monobrand stores across 95 international markets, leveraging 10 distinct sales channels. Looking ahead, the company plans to continue investing in communication and marketing, allocating approximately 10% of its total revenue to these areas in 2025.

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Matches debts add up to almost £50m, latest administrator report shows

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The debt story around failed Matchesfashion doesn’t seem to get any better with news that the figure has risen to almost £50 million with some very big names on the creditor list.

There are 956 unsecured creditors (earlier incorrectly stated to be 1,056) and they include Burberry, Prada and Gucci, as well as a number of smaller labels, all of them unlikely to get much back.

The luxury fashion e-tailer was bought by Frasers Group in December 2023 but went into administration less than three months later.

The administrators have now filed new documents at Companies House and the earlier estimate of £31 million owed is now £49.5 million. A total of £13.8 million had already been settled when the report was filed but The Times reported that the remaining creditors (the list including customers and landlords as well as brands) are likely to get back less than 2p for every £1 owed.

Matches was one of the pioneers of online luxury retail. It had been founded as a physical store in 1987 by Tom and Ruth Chapman but pivoted to e-tail as luxury labels started to realise that consumers really would buy high-priced fashion items online.

When it went up for sale around the middle of the last decade, estimates of its value kept rising until Apax Partners bought it for a reputed $1 billion in 2017. 

But a succession of CEOs was unable to turn it into the profits machine that had been hoped for and Frasers bought it for £52 million just before Christmas 2023.

It pumped millions into the business but quickly came to the conclusion that too much more cash was needed to turn it around. It still owns the Matches name having bought it out of administration a year ago for £20 million.

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