NEW YORK - Macy's, Inc. (NYSE: NYSE:M) has announced the appointment of two new independent directors, Richard (Ric) Clark and Richard (Rick) L. Markee, to its Board of Directors, effective immediately. The move comes as the retailer continues discussions with Arkhouse Management Co. LP and Brigade Capital Management, LP concerning their acquisition proposal.
Tony Spring, the newly appointed chairman of Macy's, welcomed the new directors, highlighting their extensive experience in real estate and retail, which is expected to complement the existing board's expertise. Spring succeeds Jeff Gennette, with Douglas W. Sesler also joining as an independent director following the planned retirements of Gennette and Frank Blake.
The appointments result from an agreement with Arkhouse, leading to the withdrawal of its director nominations. Clark and Markee will join the Board's Finance Committee, which will oversee the evaluation of Arkhouse and Brigade's acquisition proposal.
Macy's Board, now comprising 15 directors, 14 of whom are independent, remains engaged with Arkhouse and Brigade, having provided them with confidential due diligence information to advance their acquisition proposal. The Board maintains its commitment to act in the best interests of all Macy's shareholders.
Bank of America (NYSE:BAC) Securities, Wells Fargo (NYSE:WFC), and legal advisor Wachtell, Lipton, Rosen & Katz are assisting Macy's in these proceedings. The agreement with Arkhouse will be detailed in a Form 8-K filing with the Securities and Exchange Commission.
Ric Clark brings nearly four decades of experience in real estate, mergers and acquisitions, and capital markets. He is the Co-Founder and Managing Partner of WatermanCLARK and has held various leadership roles at Brookfield Corp. Rick Markee has a strong background in retail leadership, having served in executive positions at Vitamin Shoppe, Inc., and senior roles at Toys "R" Us, Inc.
Macy's, headquartered in New York City, operates the iconic Macy's, Bloomingdale's, and Bluemercury brands, with a focus on providing a seamless shopping experience through its digital and nationwide footprint. The information in this article is based on a press release statement.
InvestingPro Insights
As Macy's, Inc. (NYSE: M) navigates through potential acquisition discussions, the company's financial health is a critical factor for investors to consider. According to InvestingPro data, Macy's currently has a market capitalization of $5.42 billion. Despite a challenging retail environment, Macy's has managed to maintain a notable gross profit margin of 40.74% over the last twelve months as of Q4 2024, showcasing the company's ability to control costs and sustain profitability in its operations.
The stock's performance has been characterized by significant volatility, with a substantial price uptick of 78.31% over the last six months. This could reflect investor confidence in the company's long-term strategy or potential acquisition interest. Moreover, Macy's has demonstrated a commitment to returning value to shareholders, maintaining dividend payments for 22 consecutive years, with a dividend yield of 3.55% and a growth of 10.29% in dividends over the last twelve months as of Q4 2024.
An InvestingPro Tip suggests that Macy's is trading at a high earnings multiple, with a P/E ratio of 50.84. However, when adjusted for the last twelve months as of Q4 2024, the P/E ratio stands at a more modest 5.57. This could indicate that the stock is potentially undervalued based on its earnings capacity. Investors looking to delve deeper into Macy's financials and future prospects can find additional InvestingPro Tips on the company's dedicated page at Investing.com. There are 7 additional tips available, offering a comprehensive analysis for those considering an investment in Macy's.
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