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Hyundai’s Genesis launched in the U.S. nearly eight years ago to much skepticism but the South Korean luxury brand has proven itself worthy in the domestic market.
Sales have grown exponentially and executives expect double-digit growth annually for at least the next five years.
For the short term, Genesis is expected to grow awareness and sales with new “Magma” performance models and potentially an upcoming new three-row SUV.

Michael Wayland / CNBC

NEW YORK — When Hyundai Motor launched its Genesis luxury brand domestically in 2016, many were skeptical the South Korean automaker — recognized mainly for budget vehicles at the time — knew what it was doing.
Among the skeptics were auto industry veterans Randy Parker and Claudia Marquez. Both were working for Nissan’s luxury Infiniti brand at the time and they’ve since made the leap over to Hyundai Group, with Parker leading the Hyundai brand in the U.S.

“We both were looking at it like, ‘Oh, my God, how are these guys going to be able to make it?’ I mean, nothing against. It’s just complicated. A new brand in such a competitive set,” Marquez, who now leads Genesis in North America, told CNBC last week at the New York International Auto Show.
Not only has Genesis made it, the brand has thrived to become a dark horse in the U.S. luxury market with unique styling, unexpected comfort and well-ranked quality. It’s done so with both gas-powered and electric vehicles.

Patricia Wayne, first all-electric GV60 customer and Claudia Marquez (right), chief operating officer, Genesis Motor North America, at Genesis Santa Monica, Santa Monica, Calif., May 26, 2022.

The brand has overtaken the decades-old Infiniti brand in annual U.S. sales since 2022. Executives expect to continue annual double-digit growth over the next five years, according to Marquez, who was named Genesis’ North American chief operating officer in October 2021.
“We have to outpace, by far, the luxury market,” she said. “It’s going to continue being strong. It has to be a marathon, not a sprint.”
Genesis started as a vehicle in Hyundai’s lineup but the company announced in late 2015 that it would become its own brand. Since then, its U.S. sales have grown from fewer than 7,000 vehicles in 2016 to more than 69,000 last year.

Growing awareness

Along those lines, Marquez and José Muñoz, Hyundai president and global chief operating officer, noted that while robust Genesis’ growth is expected, it will be at a restricted pace to retain the residual values and pricing of the vehicles.
Muñoz said expectations for the brand are “still high” but its volume ambitions for the U.S. are more in line with its rivals such as Porsche than that of Lexus and Mercedes-Benz, which sell hundreds of thousands of vehicles annually.  

Hyundai CEO Jae Hoon Chang (left) and José Muñoz, Hyundai president and global chief operating officer, attend the 2024 New York International Auto Show
Michael Wayland | CNBC

“We still have a long ways to go, but this is not a mass brand. So, we don’t have a huge volume aspirations, but there’s still a significant way to go,” Muñoz, who also serves as CEO of Hyundai Motor and Genesis Motor North America, said during a separate interview at the show.
The brand’s closest competitors based on 2023 sales were Land Rover (71,727 units), Porsche (75,415 units), Lincoln (81,818) and Volvo (128,350). Genesis sales last year increased about 23% over the prior year to 69,175 vehicles.
One of Genesis’ greatest challenges remains awareness, Marquez said. Stephanie Brinley, principal automotive analyst at S&P Global Mobility, agreed with that perception.
“It’s an upstart that’s gained credibility; now it has to gain a wider audience,” Brinley said. “It is respected at this point. The problem is, just not quite enough people know about it yet. … That’s the space it occupies right now.”

Michael Wayland / CNBC

Performance models

For the short term, Genesis is looking to grow awareness and sales with new “Magma” performance models. It intends to offer a performance variant for each production vehicle, the company said last week in conjunction with the auto show in New York.
The brand also may expand its lineup with a three-row SUV. Genesis revealed a large, all-electric concept SUV last week. Marquez declined to discuss potential production plans but said to expect such a vehicle “sooner rather than later.”
Genesis currently offers three sedans (G70, G80, G90) and three SUVs (GV60, GV70, GV80). The G80, GV60 and GV70 are also available as all-electric vehicles. Genesis’ 2024 starting prices range from about $41,500 for the G70 to more than $89,000 for the G90.

GV60 Magma Concept 

Worldwide, the Genesis G80 is the best-selling model in the brand’s vehicle lineup since its introduction in 2016, with 390,738 units sold across the global market, including electrified G80 models. 
The brand is likely to get a boost in local manufacturing with a new $7.6 billion factory expected to begin production later this year in Georgia.
Muñoz said Genesis will be a “key focus of the plant,” which also will produce Hyundai and Kia vehicles. The brand currently assembles the GV70 gas and electric SUVs at a plant in Alabama, while the other models are imported from South Korea.
“The products are very strong. They’re very welcomed by the consumer as we have focused on [the U.S.],” Muñoz said. “This is the most important market for a Genesis without a doubt.”

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A highly popular class of drugs for diabetes and obesity is showing early potential to help patients with Parkinson’s disease, too. 
In a mid-stage trial, an older diabetes treatment called lixisenatide helped slow the progression of motor disability in a small group of patients with the debilitating condition.
The drug, made by Sanofi, is a GLP-1 like Novo Nordisk’s blockbuster diabetes injection Ozempic and weight loss counterpart Wegovy

The coronal view of a human brain of a patient suffering from Parkinson’s disease
Sherbrooke Connectivity Imaging Lab | Getty Images

A highly popular class of drugs for diabetes and obesity is showing early potential to help patients with Parkinson’s disease, too. 
An older diabetes treatment called lixisenatide helped slow the progression of motor disability after 12 months in patients at an early stage of the condition, according to results from a small mid-stage trial published Wednesday. The drug, made by Sanofi, is a GLP-1 like Novo Nordisk’s blockbuster diabetes injection Ozempic and weight loss counterpart Wegovy. 

Motor disability refers to symptoms such as tremors, stiffness and slowness of movement, which can make it difficult for patients to walk, talk and swallow. Researchers from France said larger and longer studies are needed to fully determine the efficacy and safety of Sanofi’s treatment in patients with the degenerative brain illness, including how long the benefits may last.
Still, the results, published late Wednesday in The New England Journal of Medicine mark an encouraging step forward in the decades-long effort to tackle Parkinson’s disease. As many as half a million Americans have been diagnosed with the condition, which is characterized by nerve cell damage in the brain. 
The results also add to the long list of potential health benefits of GLP-1s, which have skyrocketed in demand over the last year for helping patients shed pounds and regulate their blood sugar. But more research is needed to determine whether newer iterations of GLP-1s from Novo Nordisk and Eli Lilly may also help Parkinson’s patients. 
Both drugmakers are studying their respective weight loss and diabetes treatments in patients with conditions such as sleep apnea and fatty liver disease, but neither are examining their drugs in managing Parkinson’s disease. 
Sanofi pulled lixisenatide from the market at the beginning of 2023. The French drugmaker has said the discontinuation of the treatment was a business decision that was unrelated to its safety and efficacy. 

Sanofi provided the drug to the researchers and advised them on the characteristics of the medication, but otherwise was not involved in the new phase two trial. It was funded by the French Ministry for Health and Prevention, a U.K. charity called Cure Parkinson’s and an independent biomedical research organization called Van Andel Institute
In a statement to CNBC, Sanofi said it was “pleased to see the positive outcomes of this study.” The company added that it is open to “a discussion with the investigators of the study on providing support for their next phase of research.”
The trial followed 156 people with early Parkinson’s disease for a year. All participants took their usual Parkinson’s medication in the study. But one group was given an additional daily injection of Sanofi’s drug, while the other was given a placebo.
Patients who received lixisenatide showed essentially no progression of motor symptoms, while those given the placebo showed worsening motor problems. The difference between the two groups was modest but remained two months after the trial stopped and patients went completely off therapy. 
But use of Sanofi’s drug was associated with an increased risk of gastrointestinal side effects, which are common across all GLP-1s. Nearly half of patients who took the drug in the trial experienced nausea, while 13% reported vomiting.  More

CVS Health said its drug plans will cover the first over-the-counter birth control pill in the U.S. at zero cost for many health plan sponsors.
That decision could open the door for more people to prevent unintended pregnancies without a prescription. 
The drug, known as Opill from Perrigo, was available at pharmacies starting April 1.

In this photo illustration, a package of Opill is displayed on March 22, 2024 in San Anselmo, California. 
Justin Sullivan | Getty Images

CVS Health on Thursday said its drug plans will cover the first over-the-counter birth control pill in the U.S. at no cost for many health plan sponsors, a decision that could open the door for more people to prevent unintended pregnancies without a prescription. 
The company’s pharmacy benefit manager, CVS Caremark, said the pill will be added to its preventive services oral contraceptives list and will be covered at zero cost for many sponsors. The drug, known as Opill from Perrigo, was available at pharmacies starting April 1, according to a pharmacy update from CVS Caremark dated last week and viewed by CNBC.

Pharmacy benefit managers, or PBMs, maintain lists of drugs covered by health insurance plans and negotiate drug discounts with manufacturers. At most stores, Opill has a retail price of $19.99 for a one-month supply and $49.99 for a three-month supply. 
The Food and Drug Administration approved Perrigo’s medication in July. It marks the first time that many U.S. residents are able to buy birth control pills over the counter, the same way they would purchase common pills like Tylenol or Advil. 
The drug could significantly expand availability of contraception, especially for younger women and those in rural and underserved communities who often have trouble getting access to birth control methods. 
Medical organizations have estimated that 45% of the 6 million annual pregnancies in the U.S. are unintended.
The pill’s entrance into the market is a win for the Biden administration, which has tried to shore up reproductive rights as abortion restrictions rise in many states. 
The Supreme Court’s decision to overturn the landmark Roe v. Wade ruling more than a year ago, which ended 50 years of federal abortion rights, has led to shrinking availability of the procedure nationwide and renewed calls for expanded access to birth control.

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Shares of Levi Strauss popped 18% after it told Wall Street its profits will be higher than expected in fiscal 2024.
The blue jeans maker is boosting profits by cutting costs, finding areas for increased efficiencies and focusing less on promotions.
Levi’s is also seeing record amounts of sales happening online and through its own shops instead of through department stores like Macy’s and Kohl’s, which come at a lower margin.

The Levi Strauss & Co. label is seen on clothes in a store at the Woodbury Common Premium Outlets in Central Valley, New York, U.S., February 15, 2022. 
Andrew Kelly | Reuters

Shares of Levi Strauss surged 12% on Thursday after the retailer raised its full-year profit guidance and posted holiday earnings that beat expectations. 
Late Wednesday, Levi’s announced its fiscal first-quarter earnings and said it expects adjusted earnings per share for fiscal 2024 to be between $1.17 and $1.27, up from a previous range of $1.15 to $1.25. 

Analysts had expected a forecast of $1.21 per share, according to LSEG, formerly known as Refinitiv. 
As the retailer contends with a slowdown in discretionary spending, it’s focused on what it can control: cutting costs and becoming more efficient so it can boost its bottom line.
In January, Levi’s launched an initiative that’s designed to accelerate profitable growth and save on costs. As part of the project, Levi’s cut about 12% of its global workforce. It also exited its Denizen business, which comes at a lower margin, and has relied less on aggressive discounting to drive sales. 
It’s also seeing record amounts of sales happening online and through its own shops instead of through department stores like Macy’s and Kohl’s, which come at a lower margin.
“The benefits from our Project Fuel initiative are just starting to unfold, which will continue to improve the agility and the efficiency of our business,” finance chief Harmit Singh said on a call with analysts. “We will also continue to deliver positive free cash flow through inventory and working capital management.” 
During the quarter, fewer promotions along with lower product costs helped to boost Levi’s gross margin by 2.4 percentage points to 58.2%, up from 55.8% a year earlier.

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Paramount’s stock fell as CNBC’s David Faber reported the company would likely need to raise new equity to merge with Skydance Media.
Shari Redstone, the controlling shareholder of Paramount, is reportedly in exclusive talks to sell her stake to Skydance’s David Ellison, and the companies are also reportedly in exclusive merger discussions.

Paramount Global’s stock slumped 8% on Thursday after CNBC’s David Faber reported the company would need to raise as much as $3 billion in new equity if it were to merge with David Ellison’s Skydance Media, according to sources familiar with the deal.
This deal comes as media mogul Shari Redstone, the controlling shareholder of Paramount, is said to be in exclusive talks with Ellison on selling her stake to him, according to Bloomberg. The companies have also reportedly entered exclusive merger discussions.

Faber said Ellison and his partners would likely step up to provide a good amount of that equity, but it would be dilutive.
The news comes as The Wall Street Journal reported that Apollo Global Management made a $26 billion all-cash offer for Paramount that was rejected, though Redstone has not found any interest in this deal.
Paramount’s stock jumped sharply in trading Wednesday after those reports.
Redstone is looking to sell Paramount, as the company has been in talks with Warner Bros Discovery on its acquisition. The MTV and CBS parent company has a market capitalization of nearly $10 billion and about $13 billion of net debt. More

Disney CEO Bob Iger called Nelson Peltz’s proxy battle with the company a “distraction.”
Iger said the company’s board is focused on trying to turn a streaming profit and succession planning.
Peltz said he did not have any personal vendetta against Iger, but wanted to ensure the company had a leadership plan in place.

Nelson Peltz’s proxy battle was a “distraction” and Disney can now focus on trying to turn a streaming profit and planning its succession, its CEO Bob Iger said on CNBC’s “Squawk on the Street” on Thursday, just one day after handing a stinging defeat to the activist investor.
“One of the things that I feel great about right now is, put the victory aside, that I can spend all of my time with the management team and the board on executing against those priorities,” he said.

While Disney rolled out a string of initiatives to boost shares in recent months as the board battle went on, Iger noted that Peltz’s second proxy attempt did little to affect the company’s strategy for succession, business investments or its shift in content plans.
Iger told CNBC that choosing his replacement “is the board’s No. 1 priority.” He said Disney’s succession committee, which was established when he returned to his post in late 2022, held a number of meetings in 2023, with plans for more in 2024. Iger noted that the activism has not changed Disney’s succession process. Iger’s contract runs to 2026.
Iger spoke about the challenges Bob Chapek faced when he took over the company in 2020, including shutdowns of film and TV production, the closure of theme parks and the discontinuation of live sporting events. Chapek held the post for more than two years before Iger returned to it.
“Obviously, we all learn from the past, and we’re prepared for this process to be successful,” Iger said.
In an interview with CNBC on Thursday, Peltz said he did not have any personal vendetta against Iger but wanted to ensure the company had a leadership plan in place.

“The only issue I had with Bob was the succession plan, which again is at the feet of the board,” he said.

Iger also disputed the notion that Peltz’s activism was responsible for recent company stock gains — a claim the investor has made himself.
“The market is reacting to how this company is performing,” Iger said. “It was not reacting really to the activist.”
Shares of Disney are up 32% year to date. They rallied in February after the company made a series of major announcements during its earnings call, including that it had obtained the exclusive streaming rights to Taylor Swift’s Eras Tour concert film, made a $1.5 billion strategic investment in Epic Games and would launch a flagship ESPN streaming service.
For months, Disney had battled against Peltz’s Trian Fund Management, which sought two of the company’s board seats. Peltz had publicly lambasted Disney for its sustained share underperformance, failed succession process and what he claimed was billions in misdirected investments.
Peltz told CNBC he would not try to wage another battle against Disney if Iger follows through on plans to improve the company’s performance.
“I hope Bob can keep his promises,” Peltz said Thursday. ” I hope they can do all the things they assured us they were going to do. I’ll watch and wait. If they do it, they won’t hear from me again.”
Shareholders sided with Disney during Wednesday’s investor meeting. Peltz lost his board seat race to Maria Elena Lagomasino by a 2-to-1 margin, and former Disney Chief Financial Officer Jay Rasulo, whom Trian also nominated, lost to Lagomasino by a 5-to-1 margin, a person familiar with the matter said. Retail voters overwhelmingly supported Disney, that person added, helping to deliver Iger 94% of the overall vote.
A second activist, Blackwells, also failed to win board seats in its own long-shot bid.
Percentage-wise, turnout for the director vote was in the mid-60s, another person familiar with the matter said. In 2023, around 63% of Disney shareholders voted.
Iger has done much to try to right the ship at Disney since returning to the helm of the company in late 2022. He undid a new corporate structure instituted by the short-reigning Chapek and pulled back on the number of film and television projects the company was producing. Iger also announced a plan last year to invest $60 billion in Disney’s theme park, cruise and experience business over the next 10 years.
Up next is a new bundled sports service with Warner Bros. Discovery and Fox, as well as a flagship standalone ESPN service, which will eventually be available directly through Disney+.
“What we’re trying to do is basically serve sports fans in multiple ways,” Iger said, adding that he doesn’t expect significant cannibalization between the two products.
Iger said the flagship ESPN service will have significantly more content than the ESPN component of the joint venture will have. He declined to disclose more about the joint venture, including a potential name or price point for the service.

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Data from business intelligence firm Creditsafe shows Peloton, Saks, Express and Bath & Body Works have routinely failed to pay their vendors on time.
If relationships with vendors sour, it can in some cases be an early sign a company is in financial distress.
Creditsafe’s insights are based on trade payment data, or a company’s payment history with its suppliers, and doesn’t represent a company’s total trading profile.

A person walks past a sales advertisement at Saks Off 5th department store ahead of the Thanksgiving holiday sales in Washington, D.C., on Nov. 21, 2023.
Saul Loeb | AFP | Getty Images

In the months before Bed Bath & Beyond declared bankruptcy last April, the former home goods titan was trapped in a crushing cycle. The retailer had been failing to pay its vendors on time, if at all. During the pivotal holiday season, some began requiring payment when goods were delivered or refusing orders altogether, which left Bed Bath unable to stock shelves. 
Running low on cash and needing a strong holiday quarter, the retailer’s position — and in turn its relationship with vendors — only got worse. The cycle continued until the big boxer succumbed to bankruptcy, and was liquidated a few months later. 

Similar dynamics accelerated the demise of other once-ubiquitous retailers, such as RadioShack and Toys R Us. While the factors that led to their downfalls varied, failing to pay vendors on time is often a sign of financial distress or an early indicator of bankruptcy risk, experts have told CNBC.
Plenty of companies, including many that are healthy, leave bills unpaid for weeks or months. But when companies have sudden fluctuations in unpaid bills, at the same time their sales fall or debts rise, late-payment rates help to build a picture of which businesses could face financial risks in the coming months and years if their operations don’t improve.
Retailers including Peloton, Saks, Express and Bath & Body Works have often failed to pay their vendors on time in the last few months, according to new data from Creditsafe, a business intelligence platform that analyzes companies’ financial, legal and compliance risks.
In some cases, they were later on their bills than usual, indicating they could be struggling to manage cash flows or planning for revenue fluctuations.
“It is generally a telltale sign of financial distress,” Perry Mandarino, the co-head of restructuring at B. Riley Securities, told CNBC in an interview. “It’s either they have liquidity issues, or they don’t care.” 

To be sure, late payments don’t always signal financial troubles. Some large retailers with many vendors could have a healthy balance sheet, but because they have leverage they could decide to pay their suppliers when it’s convenient to them, said Mandarino. Those instances are bigger issues for vendors than for retailers.
In other cases, inconsistent payments could indicate cash flow issues, especially when companies aren’t profitable and have high debt. It’s not unusual for a business to pay a vendor 10 days late, if that’s what it typically does. But if that cadence suddenly changes, it’s cause for concern, said Mandarino. 
Creditsafe’s insights are based in part on companies’ payment history with suppliers, collected through its “global network of partners and trade payment contributors.” 
The firm uses the data and other insights to determine a company’s credit risk. Investment banks also use the information when deciding lending terms with a company, or to gauge whether a business is in financial distress. The information is regularly updated, and the data used in this report was current as of last Wednesday.
Creditsafe spokesperson Ragini Bhalla said payment data is only one factor the firm considers when assessing a company’s financial health.
Though the data “doesn’t represent a company’s total trading behavior, analysis has proven that it is hugely predictive of a company’s financial health and creditworthiness,” Bhalla said.

Peloton

The connected fitness company paid most of its bills on time in November, but the percentage of late payments spiked in December. It dipped in January, before jumping again in February, according to Creditsafe’s report.

“When the number of late payments increases like this, it’s often indicative of financial challenges and poor cash flow forecasting,” Creditsafe said.
Peloton has consistently failed to reach positive free cash flow, it said in February when announcing fiscal second quarter earnings. CEO Barry McCarthy, who previously told employees that “Cash is oxygen” and “Oxygen is life,” aimed to achieve positive free cash flow by February. But the company has said it now expects to meet that goal during its fiscal fourth quarter, which concludes at the end of June. 
The company is struggling with cash flow partially because it’s not selling enough of its exercise equipment, which is costly to make, according to an analysis of Peloton’s securities filings. Demand has fallen since Covid-19 pandemic lockdowns ended.
In the three months ended Dec. 31, Peloton reported a net loss of $194.9 million, while sales fell to $743.6 million, down 6% from a year earlier. The company is trying to return to growth by June, later than previously expected.
Peloton makes plenty of money from subscriptions and could increase cash flow “somewhat immediately” if it focuses on sustaining its customer base rather than growing significantly, Simeon Siegel, senior analyst at BMO Capital Markets, told CNBC.
“My view is, you can have a brand that’s simply a good brand that generates a lot of cash and none of us will ever complain about liquidity, but that’s not what’s happening, they have to want to do that,” said Siegel. 
Siegel said he’s not concerned about Peloton’s burn rate. But if the company cannot boost sales or cut costs, his view could change next year when it will need to make payments toward its term loan, Siegel said. Peloton’s term loan requires it to pay down at least $800 million of its convertible notes by next November to avoid triggering an early maturity, he said.
A Peloton spokesperson called Creditsafe’s data “inaccurate” and said it doesn’t align with the company’s own payment information.
“We have excellent relationships with our vendor partners and do not see the same fluctuations or monthly drivers in payment times that are being reported,” the spokesperson said.
Peloton uses a metric known as days payable outstanding (DPO) which it deems as being more accurate, the spokesperson said, and shows that payments are “timely and consistent.” The metric, which can be approximated with a simple formula using information from a company’s public filings, shows on average how long it takes businesses to pay bills and invoices. Peloton’s DPO was largely consistent over the last six quarters, but the number has ticked up until it jumped to 104 days in the three months ended Dec. 31, according to CNBC estimates. The DPO was 95.5 days in the year-earlier period.
The spokesperson added that Peloton is not facing a liquidity crunch.
“Peloton is also adequately capitalized to execute our strategic objectives, and our access to capital remains strong. Our publicly reported cash and cash equivalents reinforce this,” the spokesperson said.
Creditsafe has classified Peloton as being at a “high risk” of failure.

Saks 

The private department store chain came under fire late last year after numerous vendors said Saks hadn’t paid them, leading some brands to tighten orders or stop shipping products altogether. 
The rumors first arose on social media and were later confirmed by Business of Fashion. In a quarterly letter to vendors made public in December, CEO Marc Metrick insisted to his suppliers that the company has “sufficient liquidity and a sound balance sheet,” Women’s Wear Daily reported. 
“As we carefully manage our business against the industry wide softness in the U.S. luxury market, we are confident in our ability to continue meeting our financial obligations,” Metrick wrote, according to the outlet. 
Creditsafe’s data show a company increasingly behind on its bills. While Saks often made late payments last year, its on-time payments have dropped significantly since October 2023, the firm said.

The average number of days that Saks is paying its bills late has also fluctuated.

In response, a company spokesperson told CNBC, “We believe the numbers you shared are incorrect.”
To keep operations afloat, Saks’ parent company HBC secured $200 million in capital and amended the terms of its revolving credit facility in February. 
The liquidity infusion will be used for “growth initiatives” and “general working capital purposes,” the retailer said in a news release. 
Creditsafe has classified Saks as being at a “high risk” of failure.

Express 

The apparel retailer’s business has faced pressure as discretionary spending slows and it manages a mounting pile of debt.
The company’s operational spending rose in the first three quarters of its fiscal year from the prior year, according to its third-quarter earnings release. Express had about $280 million in debt as of Oct. 28, with just $34.6 million in cash and cash equivalents. Its cash on hand improved from the prior-year period, but its ratio of assets to liabilities was under 1 at the time, indicating it didn’t have sufficient assets to cover its liabilities, according to securities filings.
In February, The Wall Street Journal reported Express is looking to restructure its debt and could be headed for bankruptcy if its lenders don’t amend their repayment options or agree to give it more cash.
Preventing bankruptcy also depends on whether Express’s vendors will keep fulfilling orders without tightening payment schedules, which would only put more pressure on the retailer, the outlet said. 
Given the recent payment trends provided by Creditsafe, Express is already struggling to keep up.
The average number of days that Express was paying its bills past the terms of its vendor contracts grew from nine in January to 15 in February. The percentage of payments that were late also increased in that time frame.
“This constant up-and-down pattern with the company’s [payments] indicates that its cash flow isn’t stable and is likely being affected by revenue changes, debt and other factors,” said Creditsafe.

Executives told analysts on the company’s third-quarter earnings call that it’s banking on an infusion of cash from the IRS under the Coronavirus Aid, Relief and Economic Security (CARES) Act to help keep operations afloat. Express expects to get at least $48 million back from the federal government, interim finance chief Mark Still said.
He said the company is working with the IRS to move the claim forward “given the importance of this receivable to our liquidity.”
In the meantime, Express’s newly appointment CEO Stewart Glendinning, who took the helm of the company in September after CEO Tim Baxter resigned, said he’s working on recovering the company’s “full profit potential,” including by cutting more costs, he told analysts during Express’s third quarter earnings call in November.
As of Monday’s close, Express’s stock was down about 83% year to date. On March 6, it was delisted from the New York Stock Exchange because it couldn’t sustain a market capitalization of at least $15 million for 30 consecutive trading days.
Express has not announced a reporting date for its fourth quarter and full-year results, which it reported last year on March 24. 
Creditsafe has classified Express as being at a “high risk” of failure.
Express didn’t return a request for comment on the report.

Bath & Body Works 

The home and body care retailer has seen sales slump as demand for its candles and soaps normalized after a pandemic boom. But it’s regularly profitable, and had enough assets to cover its liabilities in the three months ended Feb. 3, securities filings show. 
Still, its payment patterns have been “erratic” over the last year, according to Creditsafe. While it may not face imminent risk of default, an unpredictable payment history could weigh against Bath & Body Works if it’s looking to shore up fresh financing or secure new suppliers, said Bhalla, Creditsafe’s spokesperson.
The average number of days that Bath & Body Works was paying its bills past the terms of its vendor contracts stood at 10 in September and October, and then grew to 22 and 28 in November and January, respectively. The percentage of payments that were late have also risen since December.

Bloomberg data shows the average number of days that bills remained unpaid fell slightly from 37.63 in fiscal 2022 to 36.93 in fiscal 2023.
“Bath & Body Works values being a good partner for our vendors,” the company told CNBC. “This is evident in our data — as reflected on reputable financial reporting platforms — which shows us providing consistent timely payment.”
Creditsafe has classified Bath & Body Works as being at a “moderate risk” of failure.

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Alaska said it expects additional compensation from Boeing beyond the first quarter.
The FAA grounded 171 Boeing 737 Max 9 planes after a door panel blew out of an Alaska Airlines flight using that model on Jan. 5.
The accident has drawn more federal scrutiny of Boeing and has slowed aircraft deliveries and production.

The fuselage plug area of Alaska Airlines Flight 1282 Boeing 737-9 MAX, which was forced to make an emergency landing with a gap in the fuselage, is seen during its investigation by the National Transportation Safety Board (NTSB) in Portland, Oregon, U.S. January 7, 2024.
NTSB | Via Reuters

Boeing paid Alaska Airlines $160 million in compensation in the first quarter for the grounding of the 737 Max 9.
The Federal Aviation Administration grounded the jets after a door plug blew out of a nearly new Boeing 737 Max 9 operated by Alaska when the flight was at 16,000 feet, coming inches from another tragedy involving Boeing’s best-selling jet.

Alaska said in a filing on Thursday that its first-quarter “results were significantly impacted by Flight 1282 in January and the Boeing 737-9 MAX grounding which extended into February.”
Alaska said it expects additional compensation beyond the first quarter.
Alaska also noted that demand was strong despite an immediate impact after the accident. “Although we did experience some book away following the accident and 737-9 MAX grounding, February and March both finished above our original pre-grounding expectations due to these core improvements,” it said.
The filing is an early look at what Boeing is providing its major customers due to the Jan. 5 accident, which has led to additional government scrutiny and a slowdown in aircraft deliveries and production.
United Airlines’ pilots union told members last week that the airline is offering pilots unpaid time off in May because of delayed Boeing deliveries, CNBC reported earlier this week.
Boeing didn’t immediately comment. The manufacturer and U.S. airlines report first-quarter results later this month. More