Macy's shares surged 18% today as investors imagine what a spinoff of the department store's e-commerce business could mean. The department store company faces activism pressure to separate its new unit, mirroring its competitor's recent strategy in the online marketplace.
Monday's rally came after Dow Jones reported on Sax Fifth Avenue plans to seek a $600,000 valuation for an IPO of its online business. Earlier this year, the upscale department store announced it would separate its brick and mortar markets from its electronic commerce business as consumers increasingly shop online for luxury goods.
Activist hedge fund Jana Partners reportedly wants Macy's to follow the same path. Over the last year and half, buying online became a hot topic as bricks and mortar shops temporarily closed during the Pandemic.
Macy's market cap sits at $8.7 billion currently. In this year, the shares of department stores have risen 150%.
Macy's reached out to Yahoo Finance for a comment, but did not receive a reply by the time this article was published.
Shares of other retailers rallied on Monday. Kohl s KSS was up more than 4% while Nordstrom JWN increased about 2%.