Nordstrom Inc. (JWN): New Analyst Report from Zacks Equity Research - Zacks Equity Research Report

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Summary:
We remain encouraged by Nordstrom's better-than-expected first-quarter fiscal 2014 results. The company's customer strategy continued to bear fruit reflecting growth across channels, along with efficient inventory and expense management. Moreover, we believe that the company's store expansion strategies and entry into the Canadian market will boost its top-line in the long run. However, the company's projections for fiscal 2014 reflect higher costs across the board due to the ongoing investments, which will likely weigh on the bottom-line in the short run. Moreover, we remain cautious about the company's growth prospects due to the soft economic recovery, intense competition and exposure to seasonal fluctuations. Hence, we retain our long-term Neutral' recommendation on the stock.

Overview:

Nordstrom Inc. is a leading fashion specialty retailer in the U.S., offering high-quality apparel, shoes, cosmetics and accessories for men, women and kids. The company offers both branded and private label merchandise, which are positioned in the upscale segment of the industry and targeted towards the aspiring middle class. The company has two segments: Retail and Credit Card. The Retail segment offers a selection of brand name and private label merchandise. The segment includes Nordstrom branded full-line stores and website, off-price Nordstrom Rack stores, and other retail channels including HauteLook and Jeffrey boutiques. The Credit Card segment operates Nordstrom private label and co-branded VISA credit cards.

As of May 15, 2014, the Seattle-based company operated a network of 270 stores located in 36 states, of which 117 are full-line stores, 150 are Nordstrom Racks, 2 Jeffrey boutiques and 1 clearance outlet.


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



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