Macy's, Inc. (NYSE:M) shares moved higher after activist investor Barington Capital revealed a stake in the company and is reportedly pushing the retailer to make changes.
Barington Capital wants Macy’s to consider expansion options for its Bloomingdale’s and Bluemercury business, which they believe could trade at a higher multiple on their own.
It also asked Macy’s to create a separate real estate unit within the company. They believe Macy’s real estate is worth between $5 billion and $9 million, more than the entire company’s market capitalization of approximately $4.7 billion on Monday.
Barington Capital is also pushing for Macy’s to reduce its capital expenditures to between 1.5% and 2% of total sales and to repurchase up to $3 billion in stock over the next three years.
Macy’s has reported a decline in revenue for the last nine quarters. It is expected to report a 2.7% year-over-year drop in revenue and an almost 70% decline in earnings per share for Q3 when it hands down its latest quarterly report on December 11.
Shares of Macy’s had added 2.4% just shy of $17 late morning on Monday. The stock is down about 15% in the year to date.