Retailer Rue21 Takes Road to Bankruptcy

Rue21 has become the latest retailer to file for bankruptcy protection, citing changing fashion tastes and the “significant headwinds” facing the industry.The Pittsburgh-based fashion and accessories retailer had already begun closing nearly 400 of its 1,179 stores before it filed a Chapter 11 pe...

By Matthew Heller • May 16, 2017

TJX Same-Store Sales Growth Slows to 1%

TJX Companies missed revenue estimates and its same-store sales grew at the slowest rate in two years, raising fears that the retail doldrums have spread to the off-price segment.The parent of T.J. Maxx, Marshalls and HomeGoods said Tuesday that profit rose 8% to $536.3 million or 82 cents per sh...

By Matthew Heller • May 16, 2017

Explore the Trendline➔

Tax policy shifts: What CFOs need to know to stay ahead

Discover how evolving tax policies are creating new opportunities and challenges for CFOs.

By CFO.com staff

Metric of the Month: Transaction Processing

For years, CFOs have talked about the importance of moving finance out of the transaction-processing business and toward a more strategic role.Obviously, the transaction work still has to get done. But nothing wastes intellectual talent like an army of accountants spending most of their time open...

By Mary Driscoll • May 15, 2017

Former SEC Chief Thinks Commission Could Boost Climate Focus

Former Securities and Exchange Commission chief Mary Schapiro thinks the SEC could be doing more to push companies to disclose their climate change risks.Mary Schapiro Following the release of the SEC’s 2010 interpretive guidance on climate change disclosures, the commission “aggressively comment...

By David Katz • May 12, 2017

Macy’s Comp Sales Fall for 9th Straight Quarter

Macy’s shares plunged after the struggling retailer reported a larger-than-expected decline in same-store sales as well as a 39% drop in quarterly profit.Macy’s said Thursday that overall revenue fell 7.5% to $5.34 billion in the first quarter, in part due to store closings, while sales at stores...

By Matthew Heller • May 12, 2017

PCAOB Trying Different Tack in Selecting Audits

While there’s no evidence that audit firms can predict which audits the Public Accounting Oversight Board will choose to inspect, the PCAOB is taking steps that will limit the chance that a firm could manage to the risk of the inspection process.In remarks before the annual Baruch College Financi...

By Vincent Ryan • May 10, 2017

Ex-SEC Employee Accused of Improper Trading

A former U.S. Securities and Exchange Commission employee has been charged with making improper trades in options and other securities and concealing his trading from the SEC’s ethics office.SEC employees are subject to strict rules designed to prevent even the appearance that they may use their ...

By Matthew Heller • May 10, 2017

What Kind of Value Generator is Your Company?

I’ve been working in software now for more than 15 years, and one of the most common questions I’ve heard is, “How do these privately held software companies achieve ridiculously high valuations when they are losing massive amounts of money?” These companies are often dubbed “unicorns” because, l...

By Ken Stillwell • May 9, 2017

The Great Wealth Transfer is Here … Now What?

This year, the oldest members of the Baby Boom generation crossed a crucial threshold. They turned 70.5 years-old. Why does that matter? U.S. law currently requires anyone 70.5 or older to begin annual withdrawals from their tax-sheltered retirement accounts and pay taxes on those distributions.I...

By Brian Peccarelli • May 8, 2017

Do We Remember How to Grow?

In 2016, S&P 500 companies returned $877 billion to shareholders as dividends and net share buybacks. Distributions to shareholders increased by nearly 30% from 2007 levels — but, unfortunately, such distributions also represented 90% of these companies’ net income for the year.Frank R. Hopso...

By Frank R. Hopson • May 8, 2017

Berkshire Hathaway Profit Falls 5% to $3.56B

Berkshire Hathaway’s operating profit from its businesses fell 4.8% in the first quarter as its insurance subsidiaries swung to an underwriting loss, offsetting gains by its railroad and utilities.Warren Buffett’s conglomerate had operating earnings of $3.56 billion, or $2,163 per Class A share, ...

By Matthew Heller • May 8, 2017

SEC’s Chief Accountant: Issuers Must Address ‘Other Reporting’ Risks

When the Securities and Exchange Commission released staff guidance a year ago about reporting non-GAAP financial measures, issuers were advised to review disclosure controls and procedures to ensure they adequately addressed the use and presentation of non-GAAP financial measures.Now, with issue...

By Vincent Ryan • May 5, 2017

Revlon Shares Fall 23% on Swing to Q1 Loss

Revlon shares tumbled to their lowest level since 2013 after the makeup company reported it swung to a loss in the first quarter amid the tough environment for malls and department stores in the U.S.Revlon’s net loss was $37.4 million, or 71 cents per share, compared with income of $11.0 million,...

By Matthew Heller • May 5, 2017

Groupon Shares Drop 13% on Big Sales Miss

Groupon reported a big miss on first-quarter revenue, sending its shares down sharply, but the e-commerce marketplace said its strategy of focusing on profitability is on track.Groupon’s revenue of $673.6 million for the quarter was down about 4% on a year ago and well below analysts’ estimates o...

By Matthew Heller • May 4, 2017

iHeartMedia Issues ‘Going Concern’ Warning

The parent company of iHeartRadio has warned it may not be able to continue as a going concern as it continues to struggle with the $20 billion debt burden from a 2008 leveraged buyout.Private-equity firms Bain Capital and Thomas H. Lee Partners were the lead investors in the $24 billion buyout o...

By Matthew Heller • May 4, 2017

Apple’s Revenue Jumps 4.6% in ‘Strong’ Q2

Apple reported the second-best second quarter in its history but investors expressed some disappointment, sending its share price down as much as 2.4% in after-hours trading Tuesday.Apple’s revenue rose 4.6% to $52.9 billion while earnings per share improved to $2.10 from $1.90 in the year-ago qu...

By Matthew Heller • May 3, 2017

Annual Harvest

Not very long ago, when people talked about software companies adopting or transitioning to the subscription business model, the discussion often focused on its relative merits. Was it better business to follow the traditional model, where vendors sold a perpetual license to a “box” of software —...

By David McCann • May 2, 2017

Information Inflation

Responding to both investor demand and Securities and Exchange Commission mandates, the 10-Ks, 10-Qs, and proxy statements issued by companies contain more nonfinancial information than ever before. In its latest 10-K, for example, Alphabet devotes close to 700 words to supply chain risks. Apple’...

By Ed Zwirn • May 2, 2017

MasterCard Shares Surge on 12% Profit Gain

MasterCard on Tuesday reported better-than-expected quarterly earnings and sales but faces tighter margins as it spends heavily to fend off competition from digital payment services.The world’s second-largest payments network said net income rose 12.7% to $1.081 billion in the first quarter while...

By Matthew Heller • May 2, 2017

Amazon Shrugs Off Cloud-Computing Rivals

Powered by its cloud computing business, Amazon is continuing to defy expectations that increasing competition will slow its momentum.For the first quarter, which ended March 31, the online shopping giant reported net income rose 41% to $724 million, or $1.48 per share — the eighth straight quart...

By Matthew Heller • April 28, 2017

GM’s Q1 Profit Hits Post-Bankruptcy Record

General Motors on Friday posted a record post-bankruptcy first-quarter profit as the No. 1 automaker benefited from a shift to larger SUVs, crossovers, and trucks despite the industry-wide trend of declining sales.GM’s profits soared 33% during the first three months of the year to $2.6 billion, ...

By Matthew Heller • April 28, 2017

Short-Term Funding Bill May Avert Shutdown

Hoping to avoid a government shutdown at midnight Friday, congressional leaders introduced stopgap legislation that would give them another week to negotiate a longer-term spending bill.A vote on the legislation could come as early as Thursday, USA Today reported after House Appropriations Chairm...

By Matthew Heller • April 27, 2017

Ford’s Profit Dips 35% on Increased Costs

Ford Motor’s profit in the first quarter of 2017 fell more than one third from last year’s record quarter but the company maintained its profit outlook for the whole year.The automaker on Thursday reported $1.6 billion in profit compared to $2.4 billion in the year-ago period. Revenue was up 4%, ...

By Matthew Heller • April 27, 2017

UPS’ E-Commerce Investment Hurts Profit

United Parcel Service’s first-quarter revenue beat estimates but the costs of adding facilities and services to accommodate e-commerce delivery weighed down operating profit.The company reported Thursday that revenue rose 6.2% to $15.32 billion while earnings per share increased 3.9% to $1.32. An...

By Matthew Heller • April 27, 2017

Higher Pay for Auditors Leads to Fewer Restatements

The offices of Big Four accounting firms that pay lower salaries for audit help have a higher portion of clients that experience restatements, according to a new study posted Tuesday.Jeffrey L. Hoopes Jeffrey Hoopes, Auditors“We obtain a sample of data on how much Big Four accounting firms are pa...

By David Katz • April 27, 2017