News

close video FOX Business Flash top headlines for February 2

Check out what’s clicking on FoxBusiness.com

Nordstrom shares jumped 30% in extended trading following reports that billionaire Ryan Cohen has taken a sizable stake in the department store.

The activist investor reportedly intends to urge the chain to make changes to its board following a steep share-price decline, according to The Wall Street Journal.

Cohen is one of the top-five non-family shareholders of Nordstrom and has been known to ignite rallies in so-called meme stocks, including GameStop.

Cohen built his fortune as the founder of the online pet retailer Chewy.

RYAN COHEN MISSING FROM GAMESTOP EARNINGS CALL; NO BED BATH & BEYOND MENTION

This image shows a Nordstrom retail store at a suburban shopping mall. (iStock-Nordstrom / iStock)

The investor looks to refresh Nordstrom's board, which he believes can support cost-cutting efforts as sales decline, according to people familiar with the situation.

His goal is to replace at least one director, believed to be former Bed, Bath & Beyond CEO Mark Tritton, who chairs Nordstrom's compensation committee.

Tritton worked for Nordstrom from 2009 to 2016. 

Cohen believes it is inappropriate for Tritton to have a say in compensation for Nordstrom family members, given that he used to work around them, the people said. 

Investor Ryan Cohen and former Bed, Bath & Beyond CEO Mark Tritton (FBN)

BED BATH & BEYOND SLIDES AFTER RYAN COHEN FILES FOR STAKE SALE

"While Mr. Cohen hasn’t sought any discussions with us in several years, we are open to hearing his views, as we do with all Nordstrom shareholders," a Nordstrom spokeswoman said in a statement. "We will continue to take actions that we believe are in the best interests of the company and our shareholders."

Cohen once had a large stake in Bed, Bath & Beyond and pushed for changes during Tritton’s tenure at the home-goods retailer, which may soon file for bankruptcy production.

Tritton was ousted from Bed, Bath & Beyond in June as sales started to drop.

MEME STOCK BED BATH & BEYOND SOARS AFTER INVESTOR RYAN COHEN'S LATEST BETS

Shoppers enter the Nordstrom store on Michigan Avenue in Chicago. ((Photo by Scott Olson/Getty Images) / Getty Images)

When Cohen cashed out of Bed, Bath & Beyond, he made about $60 million, based on an analysis of regulatory filings.

GET FOX BUSINESS ON THE GO BY CLICKING HERETicker Security Last Change Change % JWN NORDSTROM INC. 21.15 +1.18 +5.91%

The company is set to report its fiscal fourth-quarter and full-year results on March 2, according to its website.

Articles You May Like

Rents across the U.S. grew for the first time in 6 months — only Arizona saw price drops in every metro
AI boom drives global stock markets to best first quarter in five years
Russia declares invasion of Ukraine a ‘war’
CalPERS takes stance against tax initiative
Can the next generation solve Chicago’s pension crisis?