Shares of Dillard’s Inc. rose 8 percent to $36.65 Thursday after a minority shareholder group led by Barington Capital Group LP said it sent a letter to the department store requesting a meeting to discuss improving profitability.
In a press release, Barington, representing a group of investors that owns over 3.2 percent of Dillard’s Class A outstanding stock, said sent the letter to Dillard’s Chief Executive Officer William Dillard II after being unable to reach the executive by phone.
“We would like to discuss a number of measures that we believe will increase the company’s profitability to levels achieved by its peers and better utilize the company’s substantial asset base,” the letter said. “These include initiatives that would augment the company’s existing operating strategy in areas such as merchandising, inventory management and cost containment, as well as measures to unlock the value of the company’s real estate portfolio.”
Dillard’s shares opened up 7.9 percent to $36.60, but despite the stock’s gain, shares of Dillard’s remained below their 52-week high of $40.56, marked on May 21.
The company, based in Little Rock, Ark., operates 330 Dillard’s stores across 29 states.
Neither Dillard’s nor Barington were immediately available for additional comment.