- Add Dillard’s to the list of retailers with activist investors in their midst pushing for big changes. Snow Park Capital Partners has taken a 2% stake in the department store retailer’s Class A stock and wants the company to sell off owned real estate property, Bloomberg reports. Dillard’s and Snow Park did not return requests for comment from Retail Dive.
- “Dillard’s is essentially an underleveraged real estate company that is masquerading as a low productivity retailer,” Snow Park Managing Partner Jeffrey Pierce told Bloomberg in an email. “We believe the value of Dillard’s vast real estate holdings is well north of $200 per share. … In fact, our estimated rental value to more productive retail tenants exceeds the company’s entire current income as a retailer.”
- Dillard’s beat analyst expectations and cleared some of the gloom around department store retail in May when it reported first quarter net income of $66.3 million. However, its net sales and same-store sales both fell by around 4%.
Dillard’s, which has fended off activists in the past as well, has plenty of company among retailers. Falling…