Activist investor pushes Kohl's to sell or split e-commerce

NEW YORK — An activist investor is pushing department store chain Kohl’s Inc. to either sell the entire company or spin off its e-commerce division.

In a letter posted online on Monday, Engine Capital LP said that it wants the Menomonee Falls, Wisconsin-based chain to consider these alternatives to boost the stock price.

“Kohl’s has a unique retail footprint relative to many mall-based retailers as well as a growing e-commerce presence, strong loyalty program, tremendous free cash flow and valuable real estate holdings,” the letter said. “However, much to our disappointment, these considerable assets and operating tailwinds continue to fail to catalyze meaningful value for shareholders.”

It noted that “there is no excuse for the board to cling to the status quo.”

Engine Capital said that if Kohl’s chose spinning off its e-commerce division, a move similar to what Saks did earlier this year, the stand-alone business could be valued at $12.4 billion or more, an amount that dwarfs the company’s current market capitalization. Engine Capital also said that the board should run a market test to see how much a well-capitalized financial sponsors would pay for the entire company. It noted that there are financial sponsors who will be able to pay a significant premium of 50%, or at least $75 per share.

Kohl’s shares have been up 19% since the beginning of the year and closed at $48.45 on Friday. That gives it a market cap of $7.3 billion, according to FactSet. Shares rose nearly 7%, or $3.32, to $51.77 in morning trading on Monday.

In response, Kohl said in an e-mail to The Associated Press that the board and management team “continuously examine all opportunities for maximizing shareholder value. “

“Our strong performance this year demonstrates that our strategy is gaining traction and driving results,” according to Kohl’s statement. “We appreciate the ongoing dialogue we are having with our shareholders and value their input and perspectives.”

The pressure follows moves by other activist investors to push department stores to separate their explosive online business. Saks Venture capital firm Insight Partners plowed $500 million investment for the new Saks.com company and values the stand-alone business at $2 billion. Hudson’s Bay, which also owns Saks Off Fifth and the Canadian Hudson’s Bay department store chain, went private nearly two years ago.

Meanwhile, Macy’s CEO Jeff Gennette told investors on its earnings call in November that it has hired consulting firm AlixPartners to evaluate whether the retailer should spin off its e-commerce division from its stores. The steps comes as it is under pressure from activist shareholder Jana Partners to split off the division to create better valuation.

News Related

OTHER NEWS

Sieben Parteichefs unterschreiben für Steinmeier

Die Union schließt sich nun auch formell dem Vorschlag der SPD an, Frank-Walter Steinmeier für eine zweite Amtszeit als Bundespräsident vorzuschlagen. Ein Brief, der dem SPIEGEL vorliegt, besiegelt das große ... Read more »

Canadian Red Cross swim program winding down after 76 years

After training generations of swimmers for 76 years, the Canadian Red Cross is taking a different stroke. © Provided by National Post Red Cross swim badges. Lifesaving Society Canada, a ... Read more »

Man Utd's Anthony Martial makes thoughts on Red Devils stay clear during Sevilla talks

Anthony Martial is willing to take a wage drop in order to end his Manchester United nightmare, according to reports. The Frenchman has been pushing for an Old Trafford exit ... Read more »

Ist das Ende von "Archive 81" viel schlimmer als gedacht? Darum könnte Staffel 2 noch düsterer werden

Das Staffelfinale von „Archive 81“ auf . wartet mit einem gewaltigen Cliffhanger auf. Nachdem Doktorandin Melody (Dina Shihabi) aus der Anderen Welt gerettet werden konnte, ist Archivar Dan (Mamoudou Athie) ... Read more »

Gorillaz Artist Damon Albarn Claims Taylor Swift ‘Doesn't Write Her Own Songs'

Taylor Swift is once again facing claims that she isn’t the author of her own lyrics. In an interview with The L.A. Times, Gorillaz musician Damon Albarn shared his negative opinion ... Read more »

Super Bowl 2022: Halftime show lineup

© Getty Images This year will see the 56th edition of the Super Bowl – Getty Images This year’s edition of the Super Bowl will be the 56th in the ... Read more »

Julian Assange darf Berufung beantragen

Hoffnungsschimmer für den Wikileaks-Gründer: Im Streit um die von den USA geforderte Auslieferung hat der Londoner High Court den Weg nun frei gemacht für einen Berufungsantrag vor dem Supreme Court. ... Read more »

Hotly tipped Cameroon overcome plucky Comoros 2-1 for spot in quarter finals

© Pierre René-Worms, FMM Hosts Cameroon are through to the quarter-finals of the Africa Cup of Nations but only after labouring to a 2-1 win over a Comoros side who ... Read more »

16-year-old Karnal boy honoured with PM Rashtriya Bal Puraskar for developing website

© Provided by Hindustan Times Aakarsh Kaushal of Karnal is among the 29 children from across the country, who have been awarded the PM Rashtriya Bal Puraskar (HT Photo) A ... Read more »

Your complete guide to winter on the Prairies

Winter on the Prairies can be really cold — and it can be a unique challenge for newer residents who have spent their lives in relatively warmer climates. If you’re ... Read more »

Kids vaccine rate still low despite rampant spread of Omicron variant

OTTAWA — One member of the COVID-19 Immunity Task Force says the timing of the Omicron outbreak in Canada may have hurt the uptake of pediatric vaccines, just when kids ... Read more »

Conservative MPs accuse Trudeau of pushing 'vaccine vendetta' as convoy protest heads to Ottawa

© John Morris/Reuters An individual standing atop a bridge waves at trucks taking part in a convoy protest in Fort Lawrence, Nova Scotia on Jan. 23, 2022. Conservative MPs fiercely ... Read more »

London first-time buyer: ‘My mortgage and bills cost the same as renting in a house share'

(© S Saunders/ Digital Nation Ph) From her eighth-floor balcony Karen Judge has a bird’s-eye view across the River Thames and a swathe of south-east London. It was this vista ... Read more »

Behind Jack Grealish and Oriol Romeu's tunnel spat as tempers flared after Man City draw

Jack Grealish confronted rival Oriol Romeu in the tunnel because the Southampton player kept pinching him. Saints boss Ralph Hasenhuttl admitted that Manchester City ’s £100million man “had a conversation” ... Read more »

Coastal California wildfire near Big Sur at 35% containment; Highway 1 remains closed in both directions

A wildfire stoked by strong offshore winds and dry conditions near California’s picturesque Big Sur coastline was 35% contained on Monday, fire officials said. The fire’s estimated size was reduced ... Read more »

Phoenix Suns vs. Utah Jazz NBA betting odds, lines, trends

The Phoenix Suns (36-9) are 9-point favorites as they try to continue a six-game winning streak when they host the Utah Jazz (30-17) on Monday, January 24, 2022 at Footprint ... Read more »

The best credit card for travel has a $750 welcome offer and sweet grocery perks

— Our editors review and recommend products to help you buy the stuff you need. If you sign up for a credit card after clicking one of our links, we ... Read more »

Movement in MLB lockout? League, players association meet for two hours, will bargain again Tuesday

The two sides argued Monday, and the meeting was contentious at times, but there was at least a scent of optimism Monday that the Major League Baseball season, perhaps even ... Read more »

‘It's full steam ahead' – Festival organisers delighted following hopeful COVID announcement

Festivals organisers are feeling optimistic for 2022 after Micheal Martin’s historic COVID announcement gave the events industry the green light to return to normal. Crowds are now allowed to return ... Read more »

DirecTV Stream review: Expensive, but the best option for streaming NBA and NHL

© Provided by CNET Sarah Tew/CNET In its six-year time span DirecTV Stream has had one of the most tumultuous histories of all of the live TV streaming services. After starting life as ... Read more »

Under-pressure Unilever to announce thousands of job cuts

The announcement comes days after the Dove soap to Marmite spread maker decided not to up its rejected £50bn takeover approach for GSK's Panadol-to-Aquafresh consumer healthcare business. Read more »

Cameroon edge past 10-man Comoros – who had left-back in goal

Jimmy Abdou was sent off after seven minutes as luckless Comoros, minus a recognised goalkeeper due to injury and coronavirus, saw their fairytale Africa Cup of Nations run end with ... Read more »

Two gardaí injured after stolen car reportedly involved in multiple crashes in Wexford

© Google Streetview Wexford Garda Divisional Headquarters TWO GARDAÍ REQUIRED hospital treatment after a stolen car was reportedly involved in a number of crashes in the Wexford area yesterday evening. ... Read more »

Intel Arc Alchemist mobile GPU memory specs leaked

© Provided by Dot Esports Intel’s upcoming line of Arc Alchemist mobile graphics cards is scheduled to launch sometime in Q1 2022, but their memory configurations have been outed ahead ... Read more »

Further update provided with Derby County man attracting European interest

© Provided by Football League World Championship – Peterborough United v Derby County There is an expectation that Derby County talent Festy Ebosele will seal a move away from the ... Read more »

Turkish journalist arrested, charged with insulting Erdogan

© The Hill Turkish journalist arrested, charged with insulting Erdogan A Turkish journalist was arrested and charged with “insulting” President Recep Tayyip Erdoğan on Saturday. Sedef Kabas’s arrest came roughly ... Read more »

The Dublin Bus Nitelink service will recommence this Friday

© Alamy Stock Photo DUBLIN BUS has announced its Nitelink service will recommence this Friday.  The Nitelink service runs on weekend nights. At the start of the pandemic in March ... Read more »

Man United and Liverpool 'unlikely to move for Zakaria this month'

Manchester United and Liverpool are unlikely to follow up their interest in Denis Zakaria this month. Manchester United have spoken with his agents but no offer has been submitted and ... Read more »

Chris Evans cast alongside Dwayne Johnson in Red One

© Bang Showbiz Chris Evans has joined the cast of the Amazon movie Chris Evans is set to star alongside Dwayne ‘The Rock’ Johnson in a new holiday film. The ... Read more »

The iconic silver bullet Airstream camping trailer has returned as a remote-controlled EV

© Image: Thor Industries Airstream eStream concept by Thor Industries — being towed by a Tesla Model X Recreational vehicle manufacturer Thor Industries revealed last week an electric tow assisted ... Read more »

NASA's Webb telescope reaches final destination after one million mile journey

© AP FILE – This 2015 artist’s rendering provided by Northrop Grumman via NASA shows the James Webb Space Telescope. – AP NASA’s James Webb space telescope has reached its ... Read more »

CH01CH series auction in Chandigarh: ‘0001' goes for r₹r24.4 lakh

Vehicle registration number “CH01-CH-0001” was auctioned for ₹24.4 lakh, the second-highest bid since 2012 when the same number in the CH01-AP series went for ₹26.05 lakh. The first number in ... Read more »

Mali asks Denmark to immediately withdraw troops deployed there

© Reuters/PAUL LORGERIE FILE PHOTO: A soldier from the new Takuba force stands with a Malian soldier during a patrol near Niger border in Dansongo Circle BAMAKO (Reuters) – Mali’s ... Read more »

The FBI just searched the home of a Texas Democratic congressman. How come?

Late last week, the FBI conducted a “court-authorized” search of Texas Democratic Rep. Henry Cuellar’s home and campaign office. © Kevin Dietsch/Getty Images WASHINGTON, DC – JULY 30: U.S. Rep. ... Read more »

Taliban werten Gespräche mit Vertretern des Westens als Erfolg

Nach dem Treffen mit Vertretern westlicher Staaten erhoffen sich die radikalislamischen Taliban internationale Hilfe bei der humanitären Notlage in Afghanistan. © Foto: Stian Lysberg Solum/NTB scanpix (Keystone) Der afghanische Aussenminister ... Read more »

Taylor Swift slams Blur frontman's claim that she doesn't write her own songs as false and 'so damaging'

The pop star responded to comments made about her in a Los Angeles Times interview with Blur's Damon Albarn. Read more »

The Responder: Martin's Freeman's life after brutal split from famous partner

TV and film actor Martin Freeman is one of the UK’s best-known stars. Since he shot to fame as Tim on Ricky Gervais’ The Office, Freeman has gone on to ... Read more »

Chandigarh wettest in country this January

With another spell of 38.3mm rain between Sunday night and Monday morning, and 203.9mm rain so far this month, Chandigarh has become the wettest among all states and union territories ... Read more »

Trucker convoy raises millions in funds as vaccine-hesitant supporters flock to cause

A group of truckers is garnering millions in fundraising dollars as it drives across the country to protest vaccine mandates, despite the vast majority of big-riggers having been jabbed. © ... Read more »

Is the Valorant Night Market Coming Soon?

Players are speculating that Valorant’s Night Market will return to the game within the next few weeks. “Night Market seems to be heading back soon,” wrote Mike from ValorLeaks, a ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic