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Macy’s Inc said on Thursday it is working with consulting firm AlixPartners to review its business structure, just a month after activist investor Jana Partners urged the department store chain to sell its e-commerce business.
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Jana Partners, which owns 4.6 million shares, or about 1.5% stake in the company, said early in October that Macy’s could double its share price if it separated its e-commerce business as customers buy more online.
“(We) recognize the significant value of the market assigning to pure e-commerce businesses. And as we look at the landscape today, we are undertaking additional analysis that could help inform our long-term strategy to further unlock value for Macy’s,” Chief Executive Officer Jeffrey Gennette said on a post-earnings call on Thursday.
Jana Partners said that Macy’s decision to engage with advisers to review its business was commendable.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| M | MACY’S, INC. | 37.37 | +6.53 | +21.17% |
Separately, Macy’s raised its annual sales and profit outlook, easing fears that the department store chain would struggle with product shortages during the crucial holiday season.
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Macy’s shares closed up 21% at $37.37 on Thursday.
(Reporting by Mehr Bedi and Uday Sampath Kumar in Bengaluru and Svea Herbst-Bayliss in Boston; Editing by Ramakrishnan M.)