Daniel Kretinsky was in it for a good time not a long time.
After the Czech billionaire’s firm purchased a 5 percent stake in Macy’s last month, the company said this week that its stake was down to 0.7 percent.
The exit was lucrative, according to Bloomberg, which reports that Kretinsky made some $36 million. Vesa Equity Investment’s bet on Macy’s aligned with a 65 percent surge in the stock. The shares were reportedly sold on Tuesday.
“The reason for our exit certainly isn’t lack of confidence in the company’s future or in the management’s abilities,” Vesa Equity spokesman Daniel Castvaj told Bloomberg. “We will continue closely watching Macy’s and the U.S. retail market in general, and we are not ruling out returning among the shareholders of this company.”
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As Macy’s begins to reopen stores, CEO Jeff Gennette said this week that sales were down 50 percent — better than the retailer’s forecasted 85 percent drop.
Retail has taken a nosedive in the pandemic, with stores shuttered across the country and several companies declaring bankruptcy. Still, Gennette said he was confident Macy’s would bounce back.
“The lure of having appropriate fashion from our customer, all the way from mass or off-price to luxury, is still incredibly potent,” he said in a virtual conference Tuesday. “And while it looks in certain categories grim right now, I don’t think that’s forever.” [Bloomberg] — Sylvia Varnham O’Regan
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