Shares of Nordstrom (
) have recovered steadily from the 2008-09 recession, and the
high-end retailer has increased its dividend steadily in recent
The stock is up 16% this year and 20% over the past year, in
line with the S&P 500. It's trying to break out of a
base-on-base pattern .
Nordstrom operates more than 240 stores in 31 states and plans
to open 20 more in 2013-14. It carries brands targeting wealthy
customers, resulting in high margins.
"We believe Nordstrom's sustained focus on expanding its store
network along with enhancing online sales and consumer retention
strategies will boost its top line and profitability," Zacks
Equity Research said in a note June 18.
Profit for the quarter ending in July is expected to rise 17%
to 88 cents a share, up from the prior quarter's 4% increase.
Revenue is seen rising 10% after the prior quarter's 5% gain.
On an annual basis, profit has risen for four straight years
after declining sharply in recession-wracked 2009. Profit is
expected to climb 6% to $3.79 a share for the fiscal year ending
in January. The three-year Earnings Stability Factor is 6 on a
scale of 0 to 99, with 0 being most stable.
Nordstrom's pretax margin was 9.8% last year, best in the
eight-member Retail-Department Stores industry group, which
) and Saks (
Cash flow per share has easily outpaced earnings per share
over the years. That's enabled the company to boost its dividend
for four straight years after holding it steady through the
2008-09 recession. The latest dividend hike came in February, an
11% increase to 30 cents a share.
The annualized dividend is $1.20 a share, equal to a 2%