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