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The
Cincinnati-based company, which in recent years has become the
sixth-largest online retailer, is a bargain for investors
despite Wall Street's gloomy outlook with management's plans to
close 100 underperforming stores, which could increase its stock
by 20 to 30 percent.
It also plans to cut up to 10,000 jobs out of a total 157,900.
That could reduce costs by $550 million annually, freeing up
funds to invest in the company's growing online business.
Earlier this month, Hudson's Bay Co <HBC.TO> made a takeover
approach for the retailer in an effort to further push into the
U.S. market, according to people familiar with the matter.
A potential sale, particularly one with a spinoff of the
company's real estate assets, could boost Macy's stock to $45 to
$50, the report added. On Friday, its stock closed at $31.99.
Macy's property portfolio is estimated to be worth as much as
$21 billion. It has around 900 stores in the United States,
which includes its Bloomingdale's outlets and its flagship store
in New York City's Herald Square.
(Reporting by Catherine Ngai; Editing by Sandra Maler)
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