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Nordstrom Inc (JWN)
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Upturn Advisory Summary
01/17/2025: JWN (4-star) is a STRONG-BUY. BUY since 83 days. Profits (6.07%). Updated daily EoD!
Analysis of Past Performance
Type Stock | Historic Profit -17.86% | Avg. Invested days 42 | Today’s Advisory Regular Buy |
Upturn Star Rating | Upturn Advisory Performance 4.0 | Stock Returns Performance 1.0 |
Profits based on simulation | Last Close 01/17/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 4.00B USD | Price to earnings Ratio 15.34 | 1Y Target Price 24.18 |
Price to earnings Ratio 15.34 | 1Y Target Price 24.18 | ||
Volume (30-day avg) 3184196 | Beta 2.6 | 52 Weeks Range 16.26 - 24.95 | Updated Date 01/21/2025 |
52 Weeks Range 16.26 - 24.95 | Updated Date 01/21/2025 | ||
Dividends yield (FY) 3.09% | Basic EPS (TTM) 1.58 |
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 1.9% | Operating Margin (TTM) 6.27% |
Management Effectiveness
Return on Assets (TTM) 3.93% | Return on Equity (TTM) 35.02% |
Valuation
Trailing PE 15.34 | Forward PE 12.05 | Enterprise Value 7891635254 | Price to Sales(TTM) 0.27 |
Enterprise Value 7891635254 | Price to Sales(TTM) 0.27 | ||
Enterprise Value to Revenue 0.52 | Enterprise Value to EBITDA 6 | Shares Outstanding 165047008 | Shares Floating 89979411 |
Shares Outstanding 165047008 | Shares Floating 89979411 | ||
Percent Insiders 43.19 | Percent Institutions 51.58 |
AI Summary
Nordstrom Inc. - A Comprehensive Overview (October 26, 2023)
Company Profile
History and Background:
- Founded in 1901 as a shoe store in Seattle by John W. Nordstrom and Carl F. Wallin.
- Gradually expanded into clothing and became a leading department store chain.
- Went public in 1971 and has grown through acquisitions like Nordstrom Rack (1999) and HauteLook (2011).
Core Business Areas:
- Nordstrom Department Stores: Offering high-end clothing, shoes, accessories, and cosmetics for men, women, and children.
- Nordstrom Rack: Off-price retail stores selling discounted designer and brand-name merchandise.
- Nordstrom Local: Smaller, service-oriented stores focused on personal styling and alterations.
- Nordstrom E-commerce: Online platform selling products from all Nordstrom brands and other retailers.
Leadership and Structure:
- CEO: Erik Nordstrom
- President and CMO: Pete Nordstrom
- Executive Vice President and CFO: Michael Koppel
- Board of Directors includes Nordstrom family members and independent directors.
Top Products and Market Share:
- Top Products: Women's apparel, footwear, accessories, handbags, and beauty products.
- Market Share:
- Department stores: Approximately 2.7% of the US market (2022).
- Off-price retail: Around 7.5% of the US market (2022).
- Product Performance: Nordstrom consistently receives high ratings for customer satisfaction and quality. However, it faces competition from online retailers and other department stores.
Total Addressable Market (TAM):
- The TAM for the US apparel and footwear market is estimated at $476 billion (2023).
- Nordstrom focuses on the premium segment of this market, which is projected to grow at a CAGR of 4.5% through 2027.
Financial Performance:
- Recent Financial Statements:
- Revenue: $15.02 billion (FY 2023).
- Net Income: $261 million (FY 2023).
- Profit Margin: 1.7% (FY 2023).
- Earnings per Share (EPS): $1.59 (FY 2023).
- Year-over-Year Performance: Revenue and EPS have shown slight growth compared to FY 2022.
- Cash Flow and Balance Sheet: The company maintains a healthy cash flow and manageable debt levels.
Dividends and Shareholder Returns:
- Dividend History: Nordstrom has a history of paying dividends, but suspended them in March 2020 due to the pandemic.
- Shareholder Returns: Over the past year, Nordstrom stock has generated a total return of -14.5% (as of October 26, 2023).
Growth Trajectory:
- Historical Growth: Nordstrom's revenue has grown at a CAGR of around 3.5% over the past five years.
- Future Growth: The company expects continued modest growth in the coming years, driven by e-commerce expansion and efficient inventory management.
- Recent Initiatives: Nordstrom is investing in digital initiatives like personalization and omnichannel experiences to drive growth.
Market Dynamics:
- Industry Trends: The department store industry faces challenges from online retailers and changing consumer preferences. However, the premium segment remains resilient.
- Nordstrom's Positioning: The company is well-positioned in the premium segment due to its strong brand reputation, loyal customer base, and personalized service.
- Adaptability: Nordstrom is adapting to market changes through digital investments and optimizing its store portfolio.
Competitors:
- Department Stores: Macy's (M), Dillard's (DDS), Saks Fifth Avenue (SKS)
- Off-Price Retail: TJX Companies (TJX), Ross Stores (ROST)
- Online Retailers: Amazon (AMZN), Zappos
Key Challenges and Opportunities:
Challenges:
- Competition from online retailers and other department stores.
- Rising costs and supply chain disruptions.
- Shifting consumer preferences towards value and convenience.
Opportunities:
- Growth of e-commerce and omnichannel retail.
- Expansion into new markets and product categories.
- Increasing personalization and customer service offerings.
Recent Acquisitions (2021-2023):
None reported.
AI-Based Fundamental Rating:
7/10
Nordstrom has a solid financial position, strong brand recognition, and potential for future growth. However, it faces challenges from competitors and changing market dynamics.
Sources and Disclaimers:
- Information gathered from Nordstrom's website, SEC filings, market research reports, and news articles.
- This information is for informational purposes only and should not be considered financial advice.
About Nordstrom Inc
Exchange NYSE | Headquaters Seattle, WA, United States | ||
IPO Launch date 1986-07-09 | CEO & Director Mr. Erik B. Nordstrom | ||
Sector Consumer Cyclical | Industry Department Stores | Full time employees 54000 | Website https://press.nordstrom.com |
Full time employees 54000 | Website https://press.nordstrom.com |
Nordstrom, Inc., a fashion retailer, provides apparels, shoes, beauty, accessories, and home goods for women, men, young adults, and children. It offers a range of brand-name and private-label merchandise through various channels, such as Nordstrom branded stores and online at Nordstrom.com; Nordstrom.ca; Nordstrom stores; Nordstrom Rack stores; Nordstrom Locals; ASOS; Nordstromrack.com; mobile application; and clearance stores under the Last Chance name. Nordstrom, Inc. was founded in 1901 and is headquartered in Seattle, Washington.
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