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Nordstrom, Kohl’s and Macy’s Stock up on News of Saks’ Potential IPO









Macy’s stock jumped more than 17% Monday (Oct. 18) to $28.24 per share as reports swirled about Saks Fifth Avenue possibly taking its eCommerce arm public at some point, possibly in the first half of next year.

Dillard’s, meanwhile, saw an 8% surge in its share price to more than $222 each and Nordstrom (up 5.5% to almost $30 per share) and Kohl’s (up 3.47% to $48 per share) each jumped in the wake of the Saks eCommerce scuttlebutt, which says the company is seeking a $6 billion valuation for the eCommerce segment of its business, which would be triple its value in March.

Hudson’s Bay Company, which owns Saks Fifth Avenue, has split the company into two segmentsbrick-and-mortar and eCommerce meaning an IPO could be in the offering for the online portion soon.

Also Read: Jana Partners Urges Macy’s to Separate eCommerce Business as it Snags Stake in Retailer

Earlier this month, Jana Partners—which owns a stake in Macy’s Inc.—called for a spinoff of Macy’s eCommerce business, saying breaking it up would raise shareholder value. Macy’s eCommerce business could be worth significantly more than its $7 billion market value, according to Jana projections.

In February, Macy’s said its eCommerce business would hit $10 billion by 2023 and told investors that it sees itself as a “digitally-led, omnichannel retailer” that’s facing a year of “recovery and rebuilding,” a sentiment echoed by its management team.

Related: Saks eCommerce IPO Plans Show Allure of Retail’s Digital Shift

Saks’ projected $6 billion eCommerce valuation comes as sales for that part of the business have topped $1 billion.

Saks has 40 Saks Fifth Avenue brick-and-mortar locations left across North America.

PYMNTS’ Connected Economy Playbook shows that 92% of consumers have made online purchases in the last year, in an age where 45% of consumers own six devices on which they transact and conduct daily tasks. Our research also shows three-quarters of consumers use a connected device to conduct at least one aspect of their daily lives, including shopping.




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