Activist investors Barington Capital and Thor Equities have urged Macy’s to create a real estate unit, consider options for its Bloomingdale’s and Bluemercury chains, and cut capital expenditure by about half. The group claims the company’s valuation has suffered due to management missteps and challenges in the department store sector over the past decade.
The investors point to strong sales at higher-end Bloomingdale’s and Bluemercury chains compared to Macy’s eponymous outlets. They also see promise in CEO Tony Spring’s turnaround plan, which aims to save $100 million in costs this year by closing 150 stores and opening new locations.
Macy’s has stated it is open to reviewing its strategy and engaging with the activist investors. The company recently rose 3% in premarket trading after delaying its quarterly results due to an undisclosed expense discrepancy.
The investor group advises Macy’s to aggressively repurchase up to $3 billion worth of stock over the next three years. This comes as the company’s stock has lost about 18% of its value this year, with a market capitalization of around $4.6 billion.
Source: https://finance.yahoo.com/news/activist-investor-barington-capital-urges-113225021.html