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Nordstrom hires Dollar General’s turnaround CFO behind stock surge

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Good morning. Kelly Dilts turned heads by steering Dollar General through massive operational shifts and soaring stock gains—now she’s set to bring her playbook from deep discounts to the deep pockets of the luxury world of Nordstrom.

Dilts resigned from her role of EVP and CFO at Dollar General (No. 112 on the Fortune 500) on July 11 and her final day is Aug. 28, according to an SEC filing. The company has begun a search for her successor. Dollar General declined to provide additional comments. On Aug. 29, Dilts will join Nordstrom, Inc. (No. 291) as CFO, the retailer announced on Thursday.

Kelly Dilts will join Nordstrom, Inc. as CFO on Aug. 29.

Courtesy of Dollar General Corporation

Dilts became CFO at Dollar General in May 2023. She joined the company in July 2019 as SVP of finance, where she oversaw financial planning, procurement, margin planning, decision science and analytics, and investor relations. Previously, she served as EVP and CFO at Francesca’s Holding Corp. and held senior finance roles at other major retailers.

With nearly three decades of financial leadership experience, Dilts was praised by Nordstrom co-CEO Erik Nordstrom in a statement, calling her a leader with “a proven track record of driving strong results at large-scale omnichannel retailers.” He expressed confidence in her ability to help strengthen the business. As of late May 2025, Nordstrom is no longer a publicly traded company, having completed its transition to private ownership under the Nordstrom family and El Puerto de Liverpool.

In Nordstrom’s announcement, Dilts said, “Nordstrom is a company with a strong legacy, a clear sense of purpose, and a deep commitment to its customers, employees, and brand partners. I look forward to working alongside the leadership team to build on that foundation.” Dilts succeeds Cathy Smith, who left Nordstrom in March to join Starbucks as CFO.

Shrinking ‘shrink’

Dollar General has faced notable challenges, responding to shifting consumer needs, regulatory pressures, and competitive headwinds, along with CEO transitions. In a December 2023 earnings call, Dilts said that “shrink”—an industry term referring primarily to theft—“has been pretty significant for us for a while, and it’s definitely going to carry into 2024.”

She has credited improvements in this area to the company’s Back-to-Basics strategy. Notably, Dollar General used AI to analyze self-checkout purchases, identify stores with the highest levels of theft and mis-scanned items. That determined the company’s decision, led by CEO Todd Vasos, to eliminate the option of self-checkout in the vast majority of its stores. 

In Q1 2025, Dollar General’s gross profit as a percentage of sales rose to 31%, up by 78 basis points, a gain Dilts attributed to reduced shrink and higher inventory markups. “Our shrink mitigation efforts have continued to drive positive results, including a year-over-year improvement of 61 basis points in the first quarter,” she said on the June 3 earnings call.

A top-performing retail stock

Amid tariffs and inflation, Dollar General and other discount retailers have attracted more middle- and higher-income shoppers. After strong Q1 results, Dollar General raised its full-year guidance.

DG stands out as the leading consumer/retail stock and one of the biggest movers since the market’s February high. DG’s share price increased from about $74 in mid-February to more than $113 by mid-July, a gain of over 50%. It is especially noteworthy as the leading gainer among major retailers and a driving force behind the S&P 500’s latest rally. 

For the rest of the year, Morningstar equity analyst Dan Su expects Dollar General to remain attentive to tariffs, given that about 20% of sales are from imports. Su told me that the company has done a “solid job” in attracting new shoppers, and he anticipates continued investments in merchandising, store renovations, and labor to sustain same-store sales growth.

As Dilts moves on to Nordstrom, she will have the opportunity to once again execute a transformative strategy at another major retailer.

Have a good weekend.

Sheryl Estrada
sheryl.estrada@fortune.com

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More Fortune 500 Power Moves

Leeny Oberg, CFO and EVP of development at Marriott International (No. 171) has decided to retire effective March 31, 2026, after spending more than two decades with the U.S. hotel operator. Oberg, CFO since 2016, will be succeeded by Jen Mason, who joined Marriott in 1992 and currently serves as global officer, treasurer and risk management. Mason is also a former CFO of the U.S. and Canada at the company. Shawn Hill was promoted to the role of EVP and chief development officer, effective Jan. 1. Oberg has been in that role since February 2023.

Daniel S. Tucker, EVP and CFO of Southern Company (No. 161), an energy provider, plans to retire. David P. Poroch, currently SVP, comptroller and chief accounting officer, was promoted to succeed Tucker, effective July 31. Tucker will transition to a senior advisory role reporting to the CEO until his retirement on Oct. 1. Poroch began his career with Southern Company in 2012 as VP and chief audit executive of Southern Company Services. From there, he served as EVP, CFO and treasurer of Georgia Power and then EVP and CFO at Southern Company Gas in 2021. Before joining Southern Company, he was a partner with Deloitte & Touche LLP.

Every Friday morning, the weekly Fortune 500 Power Moves column tracks Fortune 500 company C-suite shifts—see the most recent edition. 

More notable moves this week:

Mukul Mehta was promoted to CFO of pharmaceutical company Novartis (ECN), effective March 16, 2026. Mukul succeeds Harry Kirsch, who has served as CFO since 2013, and will retire from Novartis after a 22-year career with the company. Harry will continue in his role as CFO until March 15, 2026. Mukul brings over 20 years of experience at Novartis. He was recently appointed to the role of head of BPA, Digital Finance and Tax, where he will continue until March of next year. His career includes serving as CFO International for three years, ad-interim President International, CFO Pharmaceuticals business unit, CFO Novartis Business Services, CFO Pharmaceuticals Europe business, and Country CFO of France, Poland, and Norway.

Brandy Richardson was appointed CFO of multi-brand luxury retailer Saks Global, effective Aug. 18. Richardson succeeds Interim CFO Mark Weinsten, who joined Saks Global to lead the company’s finance organization through the initial stages of its transformation following its acquisition of Neiman Marcus Group (NMG) in December 2024. With nearly 25 years of experience, Richardson joins Saks Global from Tailored Brands, Inc., where she has served as EVP and CFO. Richardson spent the majority of her career at NMG, where she held several finance leadership roles of increasing responsibility over her 15-year tenure.

Sandy Mahatme was appointed CFO and chief business officer of Vor Bio (Nasdaq: VOR), a clinical-stage biotechnology company. Mahatme joins Vor Bio with more than 30 years of executive leadership experience. He most recently served as president, chief operating officer, and CFO of National Resilience, Inc., a biomanufacturing company he cofounded in 2020.

Mark Mesler has stepped down from his position as CFO of Archer Aviation Inc. (NYSE: ACHR), effective July 7, according to an SEC filing. Mesler had been on medical leave since September 2024. During his absence, Priya Gupta has served as CFO and acting principal financial officer. Gupta will continue in these roles. Harsh Rungta will also remain as SVP of finance and chief accounting officer and principal accounting officer.

Karyn Ovelmen, EVP and CFO of Newmont (NYSE: NEM), one of the world’s biggest gold miners, has resigned, effective July 11. She will be replaced on an interim basis by Chief Legal Officer Peter Wexler while the company searches for a permanent replacement. 

Sarah C. Young was appointed CFO at Bell Partners, a privately held company specializing in apartment investment and management, and will succeed John Tomlinson upon his planned retirement effective Aug. 22. Young joined the company on July 14 and will report to Lili Dunn, CEO and president of Bell Partners. After his retirement, Tomlinson will remain as an advisor to the company through the end of 2025. Young previously served as CFO and senior managing director at Quarterra Group, a subsidiary of homebuilder Lennar, where she worked for 10 years. Before that, Young was part of the finance group at Walton Street Capital. 

Corleen Roche was appointed CFO of Iovance Biotherapeutics, Inc. (Nasdaq: IOVA), a commercial biotechnology company, effective Aug. 6. Roche brings to the role 30 years of experience in the biotech and life sciences industry. Most recently, she served as CFO of CG Oncology. Her previous roles included CFO of Immunome, U.S. CFO at Biogen, North America CFO of CSL Behring, and various CFO roles within Sandoz, Wyeth and Pfizer.

Big Deal

A survey by Gartner, Inc. finds that 37% of CFOs are already pausing some capital spending as we enter the second half of 2025. This pause is driven by a mix of cost pressures, policy shifts, and geopolitical risks.

The survey of 197 finance leaders, conducted on June 19, revealed a strong inclination toward caution, with many willing to pause or deprioritize capital spending. Three percent of respondents reported pausing or deprioritizing more than 25% of their capital spending for 2025.

“There is a near absence of planned increases in capital expenditures in the second half of 2025,” said Alexander Bant, chief of research in the Gartner Finance practice. Bant noted that this reflects a cautious strategy in response to the current economic and policy uncertainty facing organizations.

Another key finding: 67% of finance leaders are either in the process of cutting costs, have already completed cost reductions, or plan to do so in the second half of the year.

Going deeper

Here are four Fortune weekend reads:

“Kinder Morgan kicks off oil and gas earnings season with a bullish outlook, in part thanks to thirsty data centers” by Jordan Blum

“The economy enters its budget shopping era, with consumers doubling down on value even as they ramp up spending” by Irina Ivanova

“Coinbase’s new super app Base is a game changer—and could become a serious money maker” by Jeff John Roberts

“The 4 foods science says can help you live to 100” by Alexa Mikhail

Overheard

“I always have a suitcase on the end of my arm because I’m living hybrid.”

—Kirsty Glenne, managing director of the luxury luggage brand Antler, told Fortune in an interview. Glenne splits her time between London, Sydney, New York, and a beachside home on Britain’s coast.  Glenne discussed how she powers through long-haul flights, stays connected to her school-age children across continents and balances the demands of a global career.



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Senate Dems’ plan to fix Obamacare premiums adds nearly $300 billion to deficit, CRFB says

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December 5, 2025

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The Committee for a Responsible Federal Budget (CRFB) is a nonpartisan watchdog that regularly estimates how much the U.S. Congress is adding to the $38 trillion national debt.

With enhanced Affordable Care Act (ACA) subsidies due to expire within days, some Senate Democrats are scrambling to protect millions of Americans from getting the unpleasant holiday gift of spiking health insurance premiums. The CRFB says there’s just one problem with the plan: It’s not funded.

“With the national debt as large as the economy and interest payments costing $1 trillion annually, it is absurd to suggest adding hundreds of billions more to the debt,” CRFB President Maya MacGuineas wrote in a statement on Friday afternoon.

The proposal, backed by members of the Senate Democratic caucus, would fully extend the enhanced ACA subsidies for three years, from 2026 through 2028, with no additional income limits on who can qualify. Those subsidies, originally boosted during the pandemic and later renewed, were designed to lower premiums and prevent coverage losses for middle‑ and lower‑income households purchasing insurance on the ACA exchanges.

CRFB estimated that even this three‑year extension alone would add roughly $300 billion to federal deficits over the next decade, largely because the federal government would continue to shoulder a larger share of premium costs while enrollment and subsidy amounts remain elevated. If Congress ultimately moves to make the enhanced subsidies permanent—as many advocates have urged—the total cost could swell to nearly $550 billion in additional borrowing over the next decade.

Reversing recent guardrails

MacGuineas called the Senate bill “far worse than even a debt-financed extension” as it would roll back several “program integrity” measures that were enacted as part of a 2025 reconciliation law and were intended to tighten oversight of ACA subsidies. On top of that, it would be funded by borrowing even more. “This is a bad idea made worse,” MacGuineas added.

The watchdog group’s central critique is that the new Senate plan does not attempt to offset its costs through spending cuts or new revenue and, in their view, goes beyond a simple extension by expanding the underlying subsidy structure.

The legislation would permanently repeal restrictions that eliminated subsidies for certain groups enrolling during special enrollment periods and would scrap rules requiring full repayment of excess advance subsidies and stricter verification of eligibility and tax reconciliation. The bill would also nullify portions of a 2025 federal regulation that loosened limits on the actuarial value of exchange plans and altered how subsidies are calculated, effectively reshaping how generous plans can be and how federal support is determined. CRFB warned these reversals would increase costs further while weakening safeguards designed to reduce misuse and error in the subsidy system.

MacGuineas said that any subsidy extension should be paired with broader reforms to curb health spending and reduce overall borrowing. In her view, lawmakers are missing a chance to redesign ACA support in a way that lowers premiums while also improving the long‑term budget outlook.

The debate over ACA subsidies recently contributed to a government funding standoff, and CRFB argued that the new Senate bill reflects a political compromise that prioritizes short‑term relief over long‑term fiscal responsibility.

“After a pointless government shutdown over this issue, it is beyond disappointing that this is the preferred solution to such an important issue,” MacGuineas wrote.

The off-year elections cast the government shutdown and cost-of-living arguments in a different light. Democrats made stunning gains and almost flipped a deep-red district in Tennessee as politicians from the far left and center coalesced around “affordability.”

Senate Minority Leader Chuck Schumer is reportedly smelling blood in the water and doubling down on the theme heading into the pivotal midterm elections of 2026. President Donald Trump is scheduled to visit Pennsylvania soon to discuss pocketbook anxieties. But he is repeating predecessor Joe Biden’s habit of dismissing inflation, despite widespread evidence to the contrary.

“We fixed inflation, and we fixed almost everything,” Trump said in a Tuesday cabinet meeting, in which he also dismissed affordability as a “hoax” pushed by Democrats.​

Lawmakers on both sides of the aisle now face a politically fraught choice: allow premiums to jump sharply—including in swing states like Pennsylvania where ACA enrollees face double‑digit increases—or pass an expensive subsidy extension that would, as CRFB calculates, explode the deficit without addressing underlying health care costs.



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Netflix–Warner Bros. deal sets up $72 billion antitrust test

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10 hours ago

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December 5, 2025

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Netflix Inc. has won the heated takeover battle for Warner Bros. Discovery Inc. Now it must convince global antitrust regulators that the deal won’t give it an illegal advantage in the streaming market. 

The $72 billion tie-up joins the world’s dominant paid streaming service with one of Hollywood’s most iconic movie studios. It would reshape the market for online video content by combining the No. 1 streaming player with the No. 4 service HBO Max and its blockbuster hits such as Game Of Thrones, Friends, and the DC Universe comics characters franchise.  

That could raise red flags for global antitrust regulators over concerns that Netflix would have too much control over the streaming market. The company faces a lengthy Justice Department review and a possible US lawsuit seeking to block the deal if it doesn’t adopt some remedies to get it cleared, analysts said.

“Netflix will have an uphill climb unless it agrees to divest HBO Max as well as additional behavioral commitments — particularly on licensing content,” said Bloomberg Intelligence analyst Jennifer Rie. “The streaming overlap is significant,” she added, saying the argument that “the market should be viewed more broadly is a tough one to win.”

By choosing Netflix, Warner Bros. has jilted another bidder, Paramount Skydance Corp., a move that risks touching off a political battle in Washington. Paramount is backed by the world’s second-richest man, Larry Ellison, and his son, David Ellison, and the company has touted their longstanding close ties to President Donald Trump. Their acquisition of Paramount, which closed in August, has won public praise from Trump. 

Comcast Corp. also made a bid for Warner Bros., looking to merge it with its NBCUniversal division.

The Justice Department’s antitrust division, which would review the transaction in the US, could argue that the deal is illegal on its face because the combined market share would put Netflix well over a 30% threshold.

The White House, the Justice Department and Comcast didn’t immediately respond to requests for comment. 

US lawmakers from both parties, including Republican Representative Darrell Issa and Democratic Senator Elizabeth Warren have already faulted the transaction — which would create a global streaming giant with 450 million users — as harmful to consumers.

“This deal looks like an anti-monopoly nightmare,” Warren said after the Netflix announcement. Utah Senator Mike Lee, a Republican, said in a social media post earlier this week that a Warner Bros.-Netflix tie-up would raise more serious competition questions “than any transaction I’ve seen in about a decade.”

European Union regulators are also likely to subject the Netflix proposal to an intensive review amid pressure from legislators. In the UK, the deal has already drawn scrutiny before the announcement, with House of Lords member Baroness Luciana Berger pressing the government on how the transaction would impact competition and consumer prices.

The combined company could raise prices and broadly impact “culture, film, cinemas and theater releases,”said Andreas Schwab, a leading member of the European Parliament on competition issues, after the announcement.

Paramount has sought to frame the Netflix deal as a non-starter. “The simple truth is that a deal with Netflix as the buyer likely will never close, due to antitrust and regulatory challenges in the United States and in most jurisdictions abroad,” Paramount’s antitrust lawyers wrote to their counterparts at Warner Bros. on Dec. 1.

Appealing directly to Trump could help Netflix avoid intense antitrust scrutiny, New Street Research’s Blair Levin wrote in a note on Friday. Levin said it’s possible that Trump could come to see the benefit of switching from a pro-Paramount position to a pro-Netflix position. “And if he does so, we believe the DOJ will follow suit,” Levin wrote.

Netflix co-Chief Executive Officer Ted Sarandos had dinner with Trump at the president’s Mar-a-Lago resort in Florida last December, a move other CEOs made after the election in order to win over the administration. In a call with investors Friday morning, Sarandos said that he’s “highly confident in the regulatory process,” contending the deal favors consumers, workers and innovation. 

“Our plans here are to work really closely with all the appropriate governments and regulators, but really confident that we’re going to get all the necessary approvals that we need,” he said.

Netflix will likely argue to regulators that other video services such as Google’s YouTube and ByteDance Ltd.’s TikTok should be included in any analysis of the market, which would dramatically shrink the company’s perceived dominance.

The US Federal Communications Commission, which regulates the transfer of broadcast-TV licenses, isn’t expected to play a role in the deal, as neither hold such licenses. Warner Bros. plans to spin off its cable TV division, which includes channels such as CNN, TBS and TNT, before the sale.

Even if antitrust reviews just focus on streaming, Netflix believes it will ultimately prevail, pointing to Amazon.com Inc.’s Prime and Walt Disney Co. as other major competitors, according to people familiar with the company’s thinking. 

Netflix is expected to argue that more than 75% of HBO Max subscribers already subscribe to Netflix, making them complementary offerings rather than competitors, said the people, who asked not to be named discussing confidential deliberations. The company is expected to make the case that reducing its content costs through owning Warner Bros., eliminating redundant back-end technology and bundling Netflix with Max will yield lower prices.



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The rise of AI reasoning models comes with a big energy tradeoff

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December 5, 2025

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Nearly all leading artificial intelligence developers are focused on building AI models that mimic the way humans reason, but new research shows these cutting-edge systems can be far more energy intensive, adding to concerns about AI’s strain on power grids.

AI reasoning models used 30 times more power on average to respond to 1,000 written prompts than alternatives without this reasoning capability or which had it disabled, according to a study released Thursday. The work was carried out by the AI Energy Score project, led by Hugging Face research scientist Sasha Luccioni and Salesforce Inc. head of AI sustainability Boris Gamazaychikov.

The researchers evaluated 40 open, freely available AI models, including software from OpenAI, Alphabet Inc.’s Google and Microsoft Corp. Some models were found to have a much wider disparity in energy consumption, including one from Chinese upstart DeepSeek. A slimmed-down version of DeepSeek’s R1 model used just 50 watt hours to respond to the prompts when reasoning was turned off, or about as much power as is needed to run a 50 watt lightbulb for an hour. With the reasoning feature enabled, the same model required 7,626 watt hours to complete the tasks.

The soaring energy needs of AI have increasingly come under scrutiny. As tech companies race to build more and bigger data centers to support AI, industry watchers have raised concerns about straining power grids and raising energy costs for consumers. A Bloomberg investigation in September found that wholesale electricity prices rose as much as 267% over the past five years in areas near data centers. There are also environmental drawbacks, as Microsoft, Google and Amazon.com Inc. have previously acknowledged the data center buildout could complicate their long-term climate objectives. 

More than a year ago, OpenAI released its first reasoning model, called o1. Where its prior software replied almost instantly to queries, o1 spent more time computing an answer before responding. Many other AI companies have since released similar systems, with the goal of solving more complex multistep problems for fields like science, math and coding.

Though reasoning systems have quickly become the industry norm for carrying out more complicated tasks, there has been little research into their energy demands. Much of the increase in power consumption is due to reasoning models generating much more text when responding, the researchers said. 

The new report aims to better understand how AI energy needs are evolving, Luccioni said. She also hopes it helps people better understand that there are different types of AI models suited to different actions. Not every query requires tapping the most computationally intensive AI reasoning systems.

“We should be smarter about the way that we use AI,” Luccioni said. “Choosing the right model for the right task is important.”

To test the difference in power use, the researchers ran all the models on the same computer hardware. They used the same prompts for each, ranging from simple questions — such as asking which team won the Super Bowl in a particular year — to more complex math problems. They also used a software tool called CodeCarbon to track how much energy was being consumed in real time.

The results varied considerably. The researchers found one of Microsoft’s Phi 4 reasoning models used 9,462 watt hours with reasoning turned on, compared with about 18 watt hours with it off. OpenAI’s largest gpt-oss model, meanwhile, had a less stark difference. It used 8,504 watt hours with reasoning on the most computationally intensive “high” setting and 5,313 watt hours with the setting turned down to “low.” 

OpenAI, Microsoft, Google and DeepSeek did not immediately respond to a request for comment.

Google released internal research in August that estimated the median text prompt for its Gemini AI service used 0.24 watt-hours of energy, roughly equal to watching TV for less than nine seconds. Google said that figure was “substantially lower than many public estimates.” 

Much of the discussion about AI power consumption has focused on large-scale facilities set up to train artificial intelligence systems. Increasingly, however, tech firms are shifting more resources to inference, or the process of running AI systems after they’ve been trained. The push toward reasoning models is a big piece of that as these systems are more reliant on inference.

Recently, some tech leaders have acknowledged that AI’s power draw needs to be reckoned with. Microsoft CEO Satya Nadella said the industry must earn the “social permission to consume energy” for AI data centers in a November interview. To do that, he argued tech must use AI to do good and foster broad economic growth.



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