Macy’s names new CFO amid turnaround effort, months after accounting error
Macy’s has appointed Thomas J. Edwards, the current CFO and COO of Capri Holdings, as its next chief financial officer and chief operating officer, the company announced Tuesday. Edwards will officially take over the dual role on June 22, succeeding Adrian Mitchell, who has served as CFO since November 2020.
The leadership change comes as Macy’s continues to push forward with a multi-year transformation plan and follows an accounting controversy disclosed late last year. In December, the retailer revealed that an internal investigation had uncovered $151 million in erroneously recorded delivery expenses, tied to accruals made by an employee between Q4 2021 and the fiscal quarter ending November 2, 2024.
Though the company maintained that the investigation found “no material impact to financial results for any historical annual or interim period,” the revelation prompted concerns about Macy’s internal controls and financial oversight. At the time, Macy’s said it was enhancing its controls and making further changes to ensure such an error does not recur.
Despite speculation, Macy’s said the leadership change is unrelated to the accounting issue. “While we don’t discuss business rationale regarding any leadership transition or change, this decision is not related to the accounting issue. We have been transparent and our disclosures are complete,” a spokesperson told CFO Dive in a statement.
Still, some experts suggest otherwise. Ed Ketz, associate professor of accounting at Penn State University, noted the timing of the announcement may have been a strategic decision by the board. “If much sooner, Macy’s would be practically admitting an error,” Ketz said via email. “This far apart one can provide alternative explanations.”
Shawn Cole, president of executive search firm Cowen Partners, said CFOs are often held accountable for such lapses. “The unfortunate reality of being CFO is that once the mistake was found, the board had to act as he [Mitchell] was ultimately responsible,” he said.
Cole suggested that publicly attributing the error to a lower-level employee may have been a tactic to contain reputational damage and buy time to identify a successor. “Avoiding the immediate need for Mitchell to resign,” he added.
Others were less convinced. David Swartz, senior equity analyst at Morningstar, said the delayed timeline between the accounting issue and the leadership change makes a direct link unlikely. “If [Mitchell] was going to take the fall for it, it probably would have happened before,” Swartz said. “The accounting issue has been sort of forgotten.”
He also noted that Edwards’ appointment aligns with Macy’s push to elevate its luxury positioning—Edwards joins from the parent company of luxury brands Versace, Jimmy Choo, and Michael Kors.
“Macy’s certainly has problems that are much bigger than who the CFO is,” Swartz said. “It’s a company that has a business model that doesn’t work anymore—the department store model is broken.”
Mitchell’s departure and Edwards’ arrival come as the company reduces its store footprint and doubles down on streamlining operations.