Activist group Jana calls on Macy’s to quit e-commerce: report

Activist investor Jana Partners is said to have encouraged department store chain Macy’s to part ways with its e-commerce business, in order to get a higher valuation from the separate entity.

Jana said in a presentation to investors on Wednesday that Macy’s online business could be worth around $ 14 billion, if it were to result in the split, Bloomberg reported. Macy’s current market value is $ 6.9 billion.

The move would emulate that of high-end department store operator Saks Fifth Avenue, which earlier this year moved its digital business to a separate company. The deal valued Saks.com at $ 2 billion, about double its annual sales.

Representatives for Jana and Macy’s did not immediately respond to CNBC’s requests for comment.

Macy’s told investors in August that it expected its e-commerce sales this year to be between $ 8.35 billion and $ 8.45 billion, after nearly doubling in the past four years.

And so, if Macy’s separated its online business at a similar sales multiple to Saks.com, it would be valued at around $ 16.8 billion including debt, or $ 14.1 billion on an equity basis. clean, Bloomberg said, citing Jana’s presentation.

Macy’s shares jumped nearly 4% on the report, erasing losses earlier in the day. The stock recently rose by less than 1%, having doubled in value since the start of the year.

Find Bloomberg’s full report here.