Latest news with #ABoldNewChapter
Yahoo
21-05-2025
- Business
- Yahoo
Macy's former activist investor doesn't rule out a new takeover campaign
It's been almost one year since Macy's turned down a $6.9 billion buyout offer, and the activist investor isn't over the rejection. Macy's ended conversations over the potential bid from Arkhouse and its partner, Brigade Capital Management, on July 15, 2024. The $24.80 per share offer is more than double Macy's current share price. Arkhouse managing partner Gavriel Kahane told Yahoo Finance Executive Editor Brian Sozzi on the Opening Bid podcast (video above) that he is still "frustrated" over it. "Most shareholders are obviously ... woulda, shoulda, coulda mid-twenties. The stock's trading in the low teens once again," Kahane said. He declined to say whether he would be taking another run at acquiring Macy's. Arkhouse remains a shareholder, but Kahane declined to disclose the size of its stake. But another proposal doesn't seem off the table. "Macy's is still publicly traded, still mispriced, and still in desperate need of someone coming in to save shareholders," Kahane said. At the time, Macy's CFO Adrian Mitchell said the offer was "not compelling" given Macy's potential. Management opted to focus on its turnaround strategy under CEO Tony Spring, dubbed "A Bold New Chapter." Mitchell, who recently announced his departure, said, "There was not enough evidence to indicate that any potential transaction was actionable ... you have to have the financing to do a transaction." Kahane said the group "very much had financing." Macy's declined to comment. Kahane said Macy's was correct to say its financing was "atypical" in that it did financing in two structures, one of which was "really real estate diligence dependent." The firm was eyeing Macy's large real estate portfolio, which includes its New York City Herald Square flagship. He later added, "We appreciate that you think you're selling just a retail business, but as buyers, we're buying a retailer and a hundred million square feet of its real estate and therefore need real estate diligence in the normal course." GlobalData managing director Neil Saunders said, "Macy's was right to reject the buyout offer." "Macy's needs to be run as a retailer, not as a real estate play," Saunders told Yahoo Finance. "Yes, there is a lot of work to do in order to get Macy's back on track, but the playbook of current management is a lot more convincing than those that want cash in for short-term gain." But Morningstar analyst David Swartz isn't convinced. "Macy's has tried various turnaround plans for years that none of which have exactly worked," he said over the phone. "It's hard to have a lot of confidence that anything is going to work in the long term and in the short term. Investors have pretty much lost confidence, and there just isn't a lot of reason for Macy's to be public anymore." As part of its turnaround strategy, Macy's plans to close 66 unprofitable stores this year and 150 total in the next three years. When asked if he believed Macy's was the next Sears, Kahane said there is a "corpse-ridden path of retailers that didn't take private equity bids when they could have and should have for the sake of their shareholders." Macy's is set to report its first quarter earnings next Wednesday as it faces flagging consumer sentiment and the impact of President Trump's tariffs. Based on Bloomberg consensus estimates, Wall Street expects same-store sales to decline 3.65% after same-store sales grew 0.2% in its fiscal fourth quarter report, which missed the Street's estimate of 1.23%. Adjusted earnings per share are expected to come in at $0.14 alongside revenue of $4.44 billion. In the fourth quarter, Macy's projected 2025 revenue of $21 billion to $21.4 billion, below 2024's $22.29 billion and missing estimates of $21.66 billion. For the year, same-store sales are expected to decrease between 0.5% to 2% year over year, compared to the 0.71% increase Wall Street anticipated. Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on X at @BrookeDiPalma or email her at bdipalma@ Click here for all of the latest retail stock news and events to better inform your investing strategy
Yahoo
09-04-2025
- Business
- Yahoo
Why Is Macy's (M) Stock Rocketing Higher Today
Shares of department store chain Macy's (NYSE:M) jumped 17% in the afternoon session after markets rallied sharply on news that President Trump announced a 90-day tariff pause. Reciprocal tariffs were also dropped to 10% for most countries, sparking renewed optimism amid ongoing trade talks. The major stock indices rose as investors, growing impatient of seemingly irrational tariff actions, welcomed the pause as a sign of a more measured path forward. However, Trump was quick to note that China was not part of the pause. Instead, he prepared to raise tariffs on Chinese goods to 125% after China announced retaliatory tariffs on US imports. This tough stance on China stood in sharp contrast to the softer tone toward others. In a week marked by growing uncertainty, this news eased some of the pressure. The questions remain whether we are out of the woods and can sustain the rally or not. Is now the time to buy Macy's? Access our full analysis report here, it's free. Macy's shares are quite volatile and have had 19 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The biggest move we wrote about over the last year was 9 months ago when the stock dropped 15.3% on the news that the company announced the termination of acquisition discussions with Arkhouse Management and Brigade Capital Management. In March 2024, Arkhouse Management and Brigade Capital submitted a proposal to acquire all outstanding shares of Macy's they don't already own for $24.00 per share in cash. Macy's Board concluded that the proposal lacked "certainty of financing at a compelling value." Moving on, Macy's announced a new strategy dubbed "A Bold New Chapter." It noted that the strategy involves "strengthening the Macy's brand, accelerating luxury growth and simplifying and modernizing end-to-end operations." Overall, the announcement implied there was no certainty investors would be able to sell their shares at the previously stated offer price. Macy's is down 29.4% since the beginning of the year, and at $11.71 per share, it is trading 42.6% below its 52-week high of $20.38 from May 2024. Investors who bought $1,000 worth of Macy's shares 5 years ago would now be looking at an investment worth $1,756. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. We prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Sign in to access your portfolio
Axios
14-03-2025
- Business
- Axios
Store closing sales enter final days for Big Lots, Party City and more
Liquidation and going-out-of-business sales are entering the final days and weeks for closing Big Lots, Party City, Kohl's and Macy's stores. Why it matters: Approximately 15,000 store closures are expected this year, more than double the 7,325 stores that closed in 2024, according to Coresight Research. JCPenney, Joann, Dollar General, CVS and Walgreens are also shuttering stores this year. State of play: If you want to shop at a closing store sale, try calling to confirm your closest location is still open. Some stores closed earlier in the liquidation sale. Big Lots stores closing, some reopening Big Lots posted on its Facebook page Friday that its stores were going into their "final weekend" and "slashing prices until it's gone!" Its Facebook page notes it's the "last 3 days or less" as "stores close when it's all gone." Zoom in: The Columbus, Ohio-based company had about 27,700 employees and more than 1,300 stores in 48 states when it filed for Chapter 11 bankruptcy protection in September. On March 14, the Big Lots store locator listed 366 stores. What's next: While all Big Lots stores are closing, about 200 locations will soon reopen under new ownership. Variety Wholesalers plans to reopen the first wave of stores in April, Fast Company reports. Party City closing all stores Party City's liquidation is in its "final 2 weeks" with discounts up to 80% off. The New Jersey-based party supplies company announced in December it was closing all of its nearly 800 stores after nearly 40 years in business. The retailer's store locator was still online Friday. Macy's closing stores 2025 The big picture: Macy's is closing 66 stores as part of its "A Bold New Chapter" plan and started liquidation sales in January. The struggling department store chain said in February 2024 that it planned to shutter 150 stores by the end of 2026 — about a third of its locations — and would invest in its "350 go-forward Macy's locations." See the Macy's store closing list here. Between the lines: Macy's confirmed to Axios in January that clearance sales would run for approximately 8–12 weeks for full-line and small-format stores. For most closing furniture galleries and free-standing Backstage stores, clearance sales began in February and were expected to run for approximately six weeks. Macy's lists the closing stores on its store locator. Kohl's closing stores 2025 list Kohl's said in January it will close 27 underperforming stores by April 2025. The Menomonee Falls, Wisconsin-based retailer operates about 1,150 stores nationwide; the closures account for less than 3% of its locations. See the Kohl's store closure list here. Yes, but: Jill Timm, Kohl's chief financial officer, said during an earnings call Tuesday that the company's fleet is "incredibly healthy" and "didn't have a lot of stores that were underperforming." Joann fabric stores closing Bankrupt arts and crafts retailer Joann announced in February that it would close all of its stores after originally planning to close 500 of its about 800 stores. The liquidation sale is only in-stores and Joann is warning consumers to "beware of fraudulent websites." Discounts are up to 50%, Joann said on its Facebook page on March 11. Reality check: Joann stopped accepting gift cards on Feb. 28, a common practice after a retailer files for bankruptcy. Dollar General closing 96 stores Zoom out: Dollar General said in a news release Thursday that it plans "to close 96 Dollar General stores and 45 pOpshelf stores and convert an additional six pOpshelf stores to Dollar General stores" in the first quarter of the fiscal year ending Jan. 30, 2026. During fiscal 2024, the company said it opened 725 new stores, remodeled 1,621 stores and relocated 85 stores. More from Axios: In photos: Blood Moon total lunar eclipse lights up sky Trump claims credit for falling egg prices but no relief for shoppers yet Government suspends free COVID test distribution program
