Nordstrom stock is falling on Wednesday, after UBS put out a bearish call on the department-store operator, arguing that recent share gains are hard to justify, amid ongoing challenges to the business. The back story. Retail has struggled in 2019, bombarded with tariffs and shifting consumer habits.
You could be thinking “Why did Nordstrom shares rise 37% on Wednesday?”
Shares of Nordstrom ( JWN 37.82% ) soared 37.8% on Wednesday after the department store company reported encouraging results for its all-important holiday shopping season. Nordstrom’s net sales climbed 23% year over year to $4.5 billion in its fiscal fourth quarter, which ended on Jan. 29.
Meanwhile, Nordstrom’s full-line sales in Northern markets continue to trail its results in the Sun Belt by a wide margin. That’s partly because of weaker traffic at its city-center flagships due to the pandemic’s impact on tourism and office traffic.
Moreover, how did Nordstrom’s profits grow sixfold?
As Nordstrom alluded to, the company’s gross margin improved by 5 percentage points to 38%, thanks in part to lower promotional activity. That helped its operating income rise tenfold to $299 million. Its net earnings, in turn, increased sixfold to $200 million, or $1.23 per share.
C. Penney and Neiman Marcus, Nordstrom officials say they are in a strong financial decision.
Will nordstrom go bankrupt?
A spokeswoman for Nordstrom confirmed to us that the retailer is not filing for bankruptcy.
Is Nordstrom’s earnings guidance too optimistic?
Some analysts think Nordstrom’s guidance is way too optimistic. But even if sales and earnings don’t recover as fast as management hopes, Nordstrom clearly has numerous opportunities to improve its earnings power relative to its recent results.
Does Nordstrom do in-store alterations?
Our onsite alterations experts will make sure you get just the fit you need—on Nordstrom purchases and pieces from your own closet. We offer free styling advice and in-store fittings so you can look and feel your best for your next special occasion. For details, just call your favorite store.
How much is Nordstrom worth?
The stock, valued at $2.8 billion, has fallen about 56% this year. The list of Nordstrom locations was first reported Friday by Business Insider.
When I was writing we ran into the question “How many Nordstroms are going dark?”.
This means roughly 14% of Nordstrom’s full-line department stores are going dark. “More than ever, we need to work with flexibility and speed,” CEO Erik Nordstrom said in a statement earlier this week. The department store industry as a whole was rattled this week, beyond the news from Nordstrom.
How many Nordstrom stores are there today?
The company today has 116 full-line stores, absent its off-price Nordstrom Rack locations and Trunk Club business.
Does nordstrom do makeovers?
Next time you’re in a Nordstrom store, indulge in a complimentary makeover, skin care consultation or other luxe beauty service from these brands and more. Indulge in the heritage of the Korean spa ritual, where efficacy meets relaxation, and discover your perfect masque.
We have in-person styling experiences to fit everybody. Get free one-on-one personalized style and fit advice in a 30-minute meeting with one of our in-store experts. Book your free 30-minute appointment. Choose a stylist from any Nordstrom store. Tell us about yourself.
Some sources claimed ahead, find your guide to five complimentary makeup services you can test out for free. Stop into Nordstrom to receive a free in-store beauty service or to be paired with a beauty stylist. Before heading in, check out the store’s list of complimentary beauty services to see if there’s something you’re interested in.