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After laying off 10,000 corporate and technology employees earlier this week, Amazon is stepping up its efforts to reduce headcount further. ✂️

This time they’re using a “voluntary severance” program to incentivize employees to resign by November 29th. And if they change their mind, they’ll have until December 5th to withdraw their application. How about that for an awkward conversation?

The package includes a “lump-sum” payment of three months’ pay plus one week of salary for every six years with the company. Their insurance will continue through the end of December, and they’ll also receive a weekly stipend for twelve weeks to help offset COBRA premiums. 💰

Meanwhile, a memo from CEO Andy Jassy warned that the company will continue to lay off employees in 2023. However, it won’t know the extent of further cuts until after the company completes its annual operating planning process.

What is clear is that Amazon and other tech giants remain in slim-down mode. And how the holiday-focused fourth quarter shakes out will likely inform its decisions about the year ahead. 📆

After hearing mixed results from big box retailers Tuesday and Wednesday, several mall retailers presented results that sent shares surging. 😮

Macy’s beat both earnings and revenue expectations. Adjusted earnings per share were $0.52 vs. the $0.19 expected. And revenues of $5.23 billion marginally beat the $5.2 billion expected. 

The company trimmed its full-year revenue guidance in August and stood by that today despite the tougher sales backdrop. The company says it has the right inventory mix for the upcoming holiday season and is showing strong luxury sales.

Additionally, its fresher inventory has allowed it to keep its pricing power, leading it to raise its full-year earnings guidance.  🔺

The company’s turnaround plan is still in process, but investors liked what they saw today. $M shares rose 15% to their highest level since June.

Gap also beat Q3 revenue expectations, coming in at $4.04 billion vs. the $3.8 billion expected. Its adjusted earnings per share of $0.71 showed a dramatic YoY improvement as the company got its inventory and costs under control. 👍

Like Macy’s, the retailer’s luxury brand Banana Republic was the clear standout, with comparable sales rising 10%. Meanwhile, Gap’s namesake brand saw comparable sales rise 4%, while Old Navy was down 1% and Athleta was flat.

Despite the improvements, the company offered a cautious view of the holiday shopping season, saying that its overall net sales could be down mid-single digits YoY in Q4.

Like its peers, the company is amidst a long-term turnaround plan and has more work to do. Today’s progress was enough to send $GPS shares higher by 16%. 📈

Last up is Kohl’s, which saw results in line with its trimmed guidance earlier in the quarter. 🛍️

Sales fell 7% to $4.28 billion as inflation and the weaker macro environment pressure the company’s core customer base, middle-income consumers. Executives say that segment is buying fewer items and opting for less expensive brands. Though, the coming did see an uptick in sales from its lower-income and higher-income customers.

On that note, the company withdrew its guidance for the year, citing a volatile retail environment and overall economic uncertainty. It says its visibility for the fourth quarter is difficult. However, it expects the holiday shopping season to be highly promotional as shoppers opt to begin purchases later in the quarter than last year.

Additionally, activist investors continue to circle the company. It’s also it looking for a new CEO to replace Michelle Gass, who is departing in December. All while it tries to execute a broader turnaround plan which includes redesigning stores, adding new brands, and offering new e-commerce options. 🏬

Needless to say, the retailer has a lot on its plate. After initially selling off on the news, shares $KSS rallied back to close up 5%.

By no means are these “knock your socks off” results for the struggling retailers, but they’re not as bad as many expected. And in the current environment, sometimes “not that bad” is all it takes to spark a rally in these companies’ shares. 🤷

International stocks have been on a run, particularly in China. Well, that run continued today despite mixed results from e-commerce giant Alibaba. 🛒

First up, Alibaba reported adjusted earnings per share of $1.82 vs. the $1.70 expected. However, revenues of $29.12 billion fell short of the $29.60 billion expected as covid lockdowns and regulatory issues hampered the company’s operations.

Investors are used to double-digit revenue growth, but YoY sales increased just 3% in the quarter. With that said, it’s an improvement from the 4% decline last quarter.

Investors appear to be looking ahead despite the macroeconomic uncertainty and covid issues. $BABA shares rallied another 8% today, adding to their strong rally since late October. 💪

Tomorrow morning, we’ll hear from JD.com, who investors think experienced similar headwinds.