Macy’s says it is working with AlixPartners to review its business structure

0
9
FILE PHOTO: Outbreak of the coronavirus disease (COVID-19) in New York City

(Reuters) – 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.

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.

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.

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.)

tagreuters.com2021binary_LYNXMPEHAH0SG-VIEWIMAGE