Business

Activist Yana invests in Macy’s to drive digital business spin

People wear face masks when walking on Herald Square in New York City on January 8, 2021.

Angela Weiss | AFP | Getty Images

Activist investor Jana Partners invested in Macy’s on Wednesday and sent a letter to the board of directors of the department store chain requesting that the e-commerce business be separated, a person familiar with the matter told CNBC.

Macy’s online business is already attracting attention from companies investing in spin-offs, he said.

Macy’s share price surged nearly 4% on Thursday afternoon, following a report first published in The Wall Street Journal. Retailer inventories have increased by more than 107% year-to-date.

The Macy’s representative declined to comment. Yana didn’t immediately respond to CNBC’s request for comment.

In a presentation earlier this month, Jana said Macy’s online business could be worth about $ 14 billion, which is higher than the department store’s current market value of $ 7 billion. At that time, Yana proposed a split without saying anything about investing in department store owners.

Macy’s told investors in August that it expects e-commerce sales to fall between $ 8.35 billion and $ 8.45 billion after nearly doubling over the past four years.

Such a separation mimics a similar separation from high-end department store operator Saks Fifth Avenue, which spread the digital business to another company earlier this year. The deal has valued Saks.com to $ 2 billion, or about twice its annual turnover.

Activist Yana invests in Macy’s to drive digital business spin

Source link Activist Yana invests in Macy’s to drive digital business spin

Back to top button