Nordstrom Inc.’s inventory pulled again earlier than Monday after surging final week following a report that activist investor Ryan Cohen is taking a big stake within the retailer.
The corporate’s inventory, which ended Friday’s session up 24.8%, plunged 10.2% Monday.
Citing folks conversant in the matter, the Wall Avenue Journal reported that Cohen was amassing a large stake within the upscale division retailer chain, and was additionally in search of adjustments to the corporate’s board. Cohen was stated to be concentrating on former Mattress Bathtub & Past Inc.
CEO Mark Tritton, who has served as a Nordstrom
director since April 2020 and is chair of the board’s compensation committee, the paper reported.
Associated: Nordstrom Inventory Surges 30% on Report Activist Investor Ryan Cohen Has a Stake
Cohen argued that the manager’s former employment at Nordstrom between 2009 and 2016 made him conflicted and unqualified to set compensation. The activist investor and Tritton have a historical past, with the latter ousted from the Mattress Bathtub & Past CEO’s function simply months after it emerged that Cohen had a stake within the house items retailer.
The activist investor’s reported transfer sparked discuss that the retailer may be part of the checklist of so-called meme shares given Cohen’s historical past with sometime-meme-stock darlings GameStop Corp.
and Mattress Bathtub & Past.
Nordstrom’s inventory has risen 6.8% within the final 12 months, outpacing the S&P 500 Index’s
decline of 8.1%.
Ryan Cohen and Nordstrom: One other meme inventory within the making?
On Friday a Nordstrom spokeswoman informed The Wall Avenue Journal that the corporate was open to listening to from Cohen and different traders. “We are going to proceed to take actions that we imagine are in the very best pursuits of the corporate and our shareholders,” she stated.
A spokeswoman for Nordstrom informed Bloomberg that “Mr. Cohen hasn’t sought any discussions with us in a number of years.”
MarketWatch has reached out to Nordstrom with a request for remark.
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Nordstrom has been dealing with challenges amid a slowdown in gross sales. Final month Nordstrom slashed its outlook and famous that vacation season gross sales have been “softer than pre-pandemic ranges.”
Of twenty-two analysts surveyed by FactSet, three have a purchase score, 13 have a maintain score and 6 have an underweight or promote score for Nordstrom.
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