Nordstrom maintained its solid momentum by posting
better-than-expected top- and bottom-line results, which also
improved year over year. Both top and bottom lines benefited from
the company's consistent store growth, flourishing customer
strategy reflecting growth across channels, the Trunk Club
acquisition and effective inventory and expense management.
Moreover, we believe that the company's store expansion initiatives
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 its margins. Moreover, we
are 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 names 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 Nov 19, 2014, the Seattle-based company operated a network
of 293 stores located in 38 states, of which 118 are full-line
stores in the U.S. and 1 in Canada, 167 are Nordstrom Racks, 2
Jeffrey boutiques, 1 clearance outlet and 4 Trunk Club stores.
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.