Macy's shares surged as much 18% today as investors imagine what a spinoff of the department store's e-commerce business could mean. The department store company faces activist pressure to separate its online unit, mirroring its rival's recent strategy.
Monday's rally came after Dow Jones reported Sax Fifth Avenue plans to seek a $6 billion valuation for an IPO of its online business. Earlier this year, the upscale department store announced it would separate its brick and mortar stores from its e-commerce business as consumers increasingly shop online for luxury goods.
Activist hedge fund Jana Partners reportedly wants Macy's to follow a similar path. Buying online has accelerated over the last year and half as brick-and-mortar shops had to temporarily close during the pandemic.
Macy's market cap currently sits at $8.7 billion. Shares of the department store have risen 150% this year.
Yahoo Finance reached out to Macy's for a comment and did not receive a reply by the time this article was published.
Shares of other retailers also rallied on Monday. Nordstrom (JWN) was up more than 4%, while Kohl’s (KSS) increased about 2%.
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