Business

Macy’s says they are working with AlixPartners to review the business structure




Macy’s Inc said on Thursday that they are working with consulting firm AlixPartners to review the business structure, just a month after activist investor Jana Partners encouraged 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 in early October that Macy’s could double its share price if they split the e-commerce business as customers buy more online.

MACYS SALES INCREASE 36%

“(We) recognize the significant value of the market assigned to pure e-commerce businesses. And as we look at the landscape today, we are conducting further analyzes that may help inform our long-term strategy to further unlock value for Macy̵[ads1]7;s,” CEO Jeffrey Gennette said in a post-earnings interview on Thursday.

Jana Partners said Macy’s decision to partner with advisors to assess the business was commendable.

Ticker Safety Last Change Change%
M MACY’S, INC. 37.37 +6.53 +21.17%

Separately, Macy’s raised its annual sales and earnings prospects, 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.)



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