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Tag: Nordstrom

  • Nordstrom (JWN) Stock Moves Up On Strong Growth Signals

    Nordstrom (JWN) Stock Moves Up On Strong Growth Signals

    On the US stock charts today, Nordstrom, Inc. (NYSE: JWN) shares are seeing a significant increase. JWN stock is witnessing a 4.59% rise in the most recent pre-market session, trading at $22.11. This significant increase comes after the business revealed its excellent second-quarter financial results, which show robust growth and a promising future.

    Performance Highlights

    Nordstrom recorded net earnings of $122 million, or $0.72 in earnings per diluted share (EPS). The business also reported profits before interest and taxes (EBIT) of $190 million.

    The timing of the company’s Anniversary Sale, which moved from the third to the second quarter by one week, contributed significantly to the increase in net sales, contributing almost 100 basis points in comparison to 2023.

    The categories with the highest growth rates—beautiful, sporty, and home—benefited most from the Anniversary Sale. Strong client participation and favorable comments about the product variety, shopping experience, and level of service were received throughout the sale, which lasted one extra day into the third quarter.

    Strategic Expansion and Dividend Declaration

    In keeping with its stellar financial results, Nordstrom announced a $0.19 quarterly cash dividend per share. Investors who were in good standing on September 3, 2024, could expect to receive their dividend on September 18, 2024.

    In addition, Nordstrom said that it is planning to develop a new Nordstrom Rack in Surprise, Arizona, which is expected to open in the fall of 2025, as part of its expansion efforts. This new store, which is situated in Prasada North, a well-liked shopping area with retailers like Target and Starbucks, will provide clients with an extensive selection of high-end products at affordable costs.

    Expanding Presence in Arizona

    Customers’ overall shopping experience will be enhanced by the new 26,000-square-foot Nordstrom Rack, which will provide convenient alternatives including online order pickup and easy returns.

    With this acquisition, Nordstrom (JWN) will be able to expand its presence in the Phoenix area, where it now employs 1,295 people between its one Nordstrom store and its eleven Nordstrom Rack locations. It is projected that the expansion would meet the needs of the growing population as well as further solidify Nordstrom’s economic dominance in Arizona.

  • Nordstrom Inc. (JWN) Becomes Investment Target of Ryan Cohen

    Nordstrom Inc. (NYSE: JWN) has been seeing a dangerous slowdown in its business that goes as far back as 2020. The department store chain is facing a range of issues on the macroeconomic front impacting its market competitiveness. The new ownership shift comes at a much-needed time for a change.

    Market Ecstatic over Nordstrom Ownership Shift

    The stock for Nordstrom Inc. (JWN) has been performing spectacularly since the start of 2023, taking on a sustained climb from $15 to almost $22, during this time. This growth curve impressively picked up the pace earlier today after news that the famous billionaire, Ryan Cohen, invested in a significant stake in the company. The market is clearly excited about Cohen’s decision-making moving forward, as he has vowed to implement serious board-level changes to companies he owns. Moreover, he holds the reputation of an activist investor and is known to trigger meme stock bullish rushes, as he did with the legendary Gamestop stock.

    Wider Troubles Facing JWN

    The news of Ryan Cohen’s investment in JWN comes as a breath of fresh air after the company continued struggling through one problem after the other. Just recently, the credit rating agency, Fitch, downgraded Nordstrom to the junk category, pointing to the serious risk creditors would face when lending to the company. It is clear that the company came under pressure with the macroeconomic problems impacting the wider consumer sector, and may see its problems exacerbate if a recession is to take place. The downgrading by Fitch further worsens financing for the company, at a time when it is already struggling to achieve healthy levels of liquidity.

    Conclusion

    Nordstrom has been struggling to perform relative to its competitors since the outbreak of the Covid-19 pandemic in 2020 and has seen its financial position dwindle ever since. The billionaire Ryan Cohen may be the change that the company needs to survive.

  • Nordstrom Inc. (JWN) stock Rallies After Hours on Beat Q4 2021 Earnings & Future Outlook

    On March 01, Nordstrom Inc. (JWN) declared its financial results for Q4 and fiscal 2021 along with the outlook for 2022. Consequently, the stock rallied in the after-hours on Tuesday.

    It seems investors were unsure of the upcoming earnings as the stock traded heavily at 254% of the average volume. At 19.54 million shares, JWN stock declined by 5.79% as it fluctuated between $19.36 and $21.13. The stock closed the regular session at a value of $19.54 per share. Following the beat earnings, the stock rebounded in the after-hours to add 34.85%. Hence, JWN stock was trading at a value of $26.35 per share in the after-hours on Tuesday. The volume remained 5.91 million shares in the session.

    The clothes, shoes, and accessories manufacturer, Nordstrom Inc. has a market capitalization of $3.3 billion. Its 159.31 million outstanding shares have declined by 13.62% year to date. The stock lost a value of 48.0% last year.

    JWN’s Q4 2021 Highlights

    In Q4 2021, the company had earnings of $200 million, against $33 million in the year-ago period. Therefore, the EPS was $1.23 on a diluted share basis in the fourth quarter of 2021.

    Source: Entrepreneur

    Moreover, the company reported earnings before taxes (EBIT) of $299 million, which was 6.8% of the sales in Q4 2021.

    JWN’s net sales saw an increase of 23% in Q4 2021, against the same period of the previous year.

    Additionally, at the end of the year, the company had $1,1 billion in liquidity which included cash of $322 million.

    Future Outlook

    For fiscal 2022, the company expects revenue to grow by 5-7% YOY and an EBIT margin of 5-6% of sales.

    Furthermore, the expected EPS for fiscal 2022 is $3.15 to $3.50. This excludes share repurchase activity impact.

    Relocation of Nordstrom Rack

    On January 31, the company announced the relocation plan of its Nordstrom Rack store within The Summit in Birmingham, AL. Managed by Bayer Properties, the 27,000 sq. ft. store is set to be opened in spring 2023.

    In addition, the new location is part of a mixed-use shopping and entertainment destination including retail, restaurant, and office space.

    The off-price retail division of JWN, Nordstrom Rack offers up to 70% off on apparel, accessories, beauty, home, and shoes from various brands to the customers.

    Conclusion

    On Tuesday, the company not only reported a beat Q4 but also an upbeat outlook for fiscal 2022. Thus, the results highly impressed the investors while they were gloomy before the earnings release. As a result, the JWN stock soared in the after-hours on Tuesday.

  • Nordstrom, Inc. (JWN) Surges on Third Quarter Surprise Earnings Beat

    Nordstrom, Inc. (JWN) Surges on Third Quarter Surprise Earnings Beat

    Nordstrom was highly affected by the COVID-19 pandemic during the year. However, the third quarter earnings surprise has attracted investors. 

    Nordstrom, Inc. (JWN) is ending the year on a high after suffering heavily from the global pandemic. Over the past month, JWN stock has soared over 110% as the investors step in seeing future growth.

    JWN shares surged on the unexpected Q3 results. The stock surged from $24.55 from the previous close to the day’s high of $29.54 on Thursday. At close, JWN was trading at $27.41 up by 11.65%.

    This marks the stock price jumping from $12.58 on Oct. 27 to $29.54, showing a more than double increase.

    Recently, Nordstrom posted its third quarter 2020 results which came as a surprise. The quarterly EPSimproved to $0.34 per share beating the $0.07 loss projected by analysts. This was the first time that the company has exceeded its EPS in the last four quarters.

    Moreover, the company recorded a sales decline of 16% up from the prior quarter decrease of 53%. As the situation is getting better, the company is gradually recovery from its sales losses.

    On Tuesday, the CEO of the company, Erik Nordstrom noted that their ability toturn things around with financial flexibility, early during the pandemic, was the main reason that helped them to increase their operating profit to $100 million. The cash flow also improved to more than $150 million in Q3 2020.

    Erik also commented that online sales had stronger growth with the shutdown of its physical stores. The online sales during Q3 were $1.6 billion, reflecting a total of 52% of Nordstrom’s business.

    The revenue was $3.09 compared to $3.67 in the same quarter a year ago. While, the net income was $53 million, down from $126 million in Q3 2019.

    One of the main reasons that leveraged the third quarter results going up was the shifting of big anniversary sale from Q2 to Q3. This helped the digital sales to increase 37% from the prior year.

    The management addressed that noted an increase in the purchase of activewear, beauty products, and home goods during the quarter. The customers are buying more cloths and accessories online during the pandemic.

    The CFO, Anne Bramman updated the outlook for the ongoing quarter. She highlighted that the sales are expected to decline to the low 20-percentage range for the fourth quarter of 2020. Still, the company forecasted a positive operating cash flow. The outlook remains uncertain due to the unsettled pandemic.