Starbucks named a new chief financial officer on Tuesday as part of a larger turnaround strategy.
Cathy Smith, who has been Nordstrom’s CFO since 2023, will join Starbucks in the next month, Starbucks Chairman and CEO Brian Niccol said in a letter to employees. Smith previously served as the chief financial officer of Target and Walmart International.
Smith will replace Rachel Ruggeri, who is leaving the company. Niccol said Smith brings extensive experience in retail, global operations and corporate turnarounds.
Ruggeri will stay at Starbucks for a period of time to assist with the transition, he said..
“Over her nearly 20 years at Starbucks, Rachel has held many important roles, always leading with integrity, a focus on results and a strong belief in the importance of our culture,” Niccol wrote.
He said Smith brings extensive experience in retail, global operations and corporate turnarounds.
Niccol is trying to reinvigorate Starbucks' sluggish sales with faster service times, a less complicated menu and others moves he says are intended to restore a community coffeehouse feel to the company's stores.
In January, the company reversed its open-door policy and said only customers who bought something would be allowed to hang out or use the restroom at a local Starbucks.
Niccol, who joined Starbucks last fall, also has been reshaping the company’s executive ranks in an effort to streamline decision-making and make leadership more accountable. In January, the president of Starbucks’ North America division stepped down after her job was split into two; Starbucks now has one executive in charge of existing stores and another in charge of store development.
Late last month, Niccol announced a plan to lay off 1,100 corporate employees globally.
The average rate on a 30-year U.S. mortgage slipped this week to its lowest level in 10 months, but remains close to where it’s been in recent weeks. The long-term rate eased to 6.56% from 6.58% last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.35%. Elevated mortgage rates have kept the U.S. housing market in a slump since early 2022, when rates began climbing from pandemic lows. The recent downward trend bodes well for prospective homebuyers who have been held back by stubbornly high home financing costs, but it has yet to spur a turnaround for home sales.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
Americans’ view of the U.S. economy declined modestly in August as anxiety over a weakening job market grew for the eighth straight month. The Conference Board said Tuesday that its consumer confidence index ticked down by1.3 points to 97.4 in August, down from July’s 98.7, but in the same narrow range of the past three months. A measure of Americans’ short-term expectations for their income, business conditions and the job market fell by 1.2 points to 74.8, remaining significantly below 80, the marker that can signal a recession ahead. Consumers’ assessments of their current economic situation also fell modestly, to 131.2 in August from 132.8 in July.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Wall Street is rallying after the head of the Federal Reserve hinted cuts to interest rates may be coming, though he gave no clear clue about when.
Federal Reserve governor Lisa Cook late Wednesday said she wouldn’t leave her post after Trump on social media called on her to resign over an accusation from one his officials that she committed mortgage fraud.
