Nordstrom Inc. (NYSE: JWN) is a fashion entrepreneur from the United States, aspired by John W. Nordstrom and Carl F. Wallin. The headquarters for Nordstrom Inc. are located in Washington 1901. Initially, the company only produces shoes as the main product and repairs shoes as a service, but now the company is expanding a variety of products such as accessories, clothing, jewelry, cosmetics, perfumes and handbags. JWN has been partnering with other brands like Gucci, Polo Ralph Lauren, Nike, Versace, Louis Vuitton, S. Perry and Top Shop.
The company is leading in fashion specialty and shoe retails in the United States. Currently, JWN have 293 stores, including 118 full-line stores in the US and one in Canada; two Jeffrey boutiques, 167 Nordstrom …show more content…
As part of the turnaround, management opted to slow new store growth, and focus on strengthening the existing business by adding more fashion to the merchandise assortment, upgrading the planning and allocation system, and cutting unnecessary costs. We think these moves helped the company differentiate itself from the competition while strengthening its balance sheet.
3. THE ANALYSIS OF NORDSTROM’S STOCKS PRICE
Based on our calculated stocks price; $66.49, we are of opinion that Nordstrom Inc.’s current price; $77.20, to be overvalued.
The company’s stocks price movements for the past 5 years show an mostly upward trend in the stock market. After the economic recession in 2008-2009, the stocks price movements have been going mostly upwards with the highest price of $77.20 as at 28 November 2014.
Chart 1: The Stocks Price Movements for the Past Five Years after The Economic Recession
The company is ranked 17th in the world’s most desired companies rankings in 2014 . The rankings are conducted by Hay Group with Fortune magazine since 1997 by evaluating nine key attributes of reputation of companies in a particular industry. The table below shows those …show more content…
The purchase was completed in August 2014 in stocks amounting to $357 million. Apart from this acquisition, JWN opened three full-line stores during the same period. This included its first store in Canada and 16 Nordstrom Rack stores.
Nordstrom Rack net sales increased by 15% amounting to $107 million, compared with the same period last year. This represented incremental volume from existing stores and the impact of 31 new stores since the third quarter of 2013. Nordstrom Rack comparable sales increased by 1.7%, down from its year-to-date trend. In addition, JWN has been making continuous improvement in generating its net income. The company generated $441 million, $613 million, $683 million, $735 million, and $734 million in 2010, 2011, 2012, 2013, and 2014 respectively.
JWN reduced its expected earnings compared with previous forecast of $ 3.80 to $3.90 to reflect the acquisition. The reduction is to represent the purchase accounting charges related to performance incentives, intangible assets amortization, transaction costs, which amounting to $0.04 and another $0.01, which related to the stocks issue. JWN expects to earn $3.70 to $3.75 per share meanwhile, analysts expect $3.86 per
The company is leading in fashion specialty and shoe retails in the United States. Currently, JWN have 293 stores, including 118 full-line stores in the US and one in Canada; two Jeffrey boutiques, 167 Nordstrom …show more content…
As part of the turnaround, management opted to slow new store growth, and focus on strengthening the existing business by adding more fashion to the merchandise assortment, upgrading the planning and allocation system, and cutting unnecessary costs. We think these moves helped the company differentiate itself from the competition while strengthening its balance sheet.
3. THE ANALYSIS OF NORDSTROM’S STOCKS PRICE
Based on our calculated stocks price; $66.49, we are of opinion that Nordstrom Inc.’s current price; $77.20, to be overvalued.
The company’s stocks price movements for the past 5 years show an mostly upward trend in the stock market. After the economic recession in 2008-2009, the stocks price movements have been going mostly upwards with the highest price of $77.20 as at 28 November 2014.
Chart 1: The Stocks Price Movements for the Past Five Years after The Economic Recession
The company is ranked 17th in the world’s most desired companies rankings in 2014 . The rankings are conducted by Hay Group with Fortune magazine since 1997 by evaluating nine key attributes of reputation of companies in a particular industry. The table below shows those …show more content…
The purchase was completed in August 2014 in stocks amounting to $357 million. Apart from this acquisition, JWN opened three full-line stores during the same period. This included its first store in Canada and 16 Nordstrom Rack stores.
Nordstrom Rack net sales increased by 15% amounting to $107 million, compared with the same period last year. This represented incremental volume from existing stores and the impact of 31 new stores since the third quarter of 2013. Nordstrom Rack comparable sales increased by 1.7%, down from its year-to-date trend. In addition, JWN has been making continuous improvement in generating its net income. The company generated $441 million, $613 million, $683 million, $735 million, and $734 million in 2010, 2011, 2012, 2013, and 2014 respectively.
JWN reduced its expected earnings compared with previous forecast of $ 3.80 to $3.90 to reflect the acquisition. The reduction is to represent the purchase accounting charges related to performance incentives, intangible assets amortization, transaction costs, which amounting to $0.04 and another $0.01, which related to the stocks issue. JWN expects to earn $3.70 to $3.75 per share meanwhile, analysts expect $3.86 per