Trading Concept
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Trading Concept
No Result
View All Result
Home Trading News

Activist firm Engine Capital reportedly pressures Kohl’s to consider sale of online biz

by
December 6, 2021
in Trading News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

Berenberg downgrades FedEx, cuts price target on rising inflation risks

JPMorgan says investors are too worried about Apple, sees 40% rebound before year-end

People shop at Kohl’s department store amid the coronavirus outbreak on September 5, 2020 in San Francisco, California.

Liu Guanguan | China News Service | Getty Images

An activist is reportedly pressuring Kohl’s to consider either a sale or a separation of its online business, following a similar move by the department store chain Saks Fifth Avenue, according to The Wall Street Journal.

The New York-based hedge fund Engine Capital reportedly wants Kohl’s to explore the two alternatives to try to boost its stock price, WSJ said. The activist group sent a letter to Kohl’s board on Sunday, the report said. Engine Capital owns a roughly 1% stake in Kohl’s.

Kohl’s shares closed Friday at $48.45, roughly where they were trading a decade ago, giving Kohl’s a market value of about $7.3 billion — less than that of Macy’s but more than Nordstrom‘s. Kohl’s stock is up about 19% year to date, underperforming the S&P 500.

According to WSJ, Engine Capital said in its letter that assuming Kohl’s brings in online sales revenue of about $6.2 billion, Kohl’s digital business alone would be worth $12.4 billion.

Engine Capital also said it believes that there are private equity firms that would pay at least $75 per share, the report said. And the group of investors said that talks with potential buyers suggest they could further monetize Kohl’s real estate, WSJ reported.

Representatives from Kohl’s and Engine Capital didn’t immediately respond to CNBC’s request for comment.

These talks are arising as investors see the appeal of owning a piece of a faster-growing e-commerce division with more tech savvy operations. Saks’ digital arm is now reportedly aiming to go public with a valuation of $6 billion, or roughly six-times revenue. It had a $2 billion valuation as recent as March.

Meantime, Macy’s has been urged by activist group Jana Partners to spin off its e-commerce operations from its stores, hoping to fetch a greater valuation. Macy’s has since hired consulting firm AlixPartners to review its business structure.

“We also recognize the significant value the market is assigning to pure e-commerce businesses,” Macy’s CEO Jeff Gennette said on a recent earnings call. “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.”

Kohl’s had another recent clash with activist investors who raised doubts about the company’s direction and tried to take control of its board. The group — Macellum Advisors, Ancora Holdings, Legion Partners Asset Management and 4010 Capital — came to an agreement with the retailer in April and added a few investor-backed independent directors to its board.

In 2014, Engine Capital pressured Ann, which owned the Ann Taylor and Loft fashion brands, to sell itself. The company did so the following year.

Read the full report from the Wall Street Journal here.

ShareTweetPin

Related Posts

Berenberg downgrades FedEx, cuts price target on rising inflation risks

by
July 1, 2022
0

Shares of FedEx are a "show me story" until the company can prove it can deliver on their turn-around strategy,...

JPMorgan says investors are too worried about Apple, sees 40% rebound before year-end

by
July 1, 2022
0

Apple may be dealing with lower consumer demand and growing FX challenges, but JPMorgan is "not as worried" about the...

The Dow just booked its worst first half since 1962. What history says about the path ahead.

by
July 1, 2022
0

This bear has claws. A bear market that began on the first trading day of 2022 drove down the S&P...

Apple Ex-Corporate Law Chief Admits Years of Insider Trading

by
July 1, 2022
0

TipRanks Future Winners? 3 Stock Giants Jim Cramer Bets On If there’s one common theme connecting the market’s experts, it’s...

JetBlue extends tender offer date for Spirit Airlines to July 29

by
July 1, 2022
0

A photo of a Spirit Airlines jet coming in for a landing in Las Vegas on 25 May 2020. JetBlue...

Next Post

The Fed Faces Another Conundrum: The Bond Market Isn’t Following Its Lead

Dow futures jump 240 points despite recent tech stock selling, bitcoin's weekend rout

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:



By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • WHO says Covid vaccine booster programs will prolong pandemic

    0 shares
    Share 0 Tweet 0
  • Spin or Split? AT&T Has a Big Decision to Make on Discovery Stake.

    0 shares
    Share 0 Tweet 0
  • Here’s how Carl Icahn is positioning for a possible recession in America

    0 shares
    Share 0 Tweet 0
  • Some lawmakers and their families are betting thousands of dollars on crypto

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by tradingconcept.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.tradingconcept.net