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.
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
Nordstrom Inc. (JWN): Read the Full Research
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
NORDSTROM INC (JWN): Free Stock Analysis Report
To read this article on Zacks.com click here.