Moving further ahead with its store expansion strategy, Nordstrom Inc.JWN announced plans to open a couple of Rack stores, one each in Florida and Illinois.
Spanning 25,000 square feet, the Florida Rack store will be positioned at Winter Park Square in Winter Park. Located at the junction of Lee Road and North Orlando Avenue, this will be greater Orlando's second store, which is slated to open doors in spring 2017.
Nordstrom first set foot in Florida in 2000, with its full-line store at Town Center in Boca Raton. Currently, the company operates nine full-line stores in the state.
Moving to the company's next store opening, the Rack store at Illinois will be housed at Fashion Outlets of Chicago in Rosemont. Spanning 28,000 square feet, the new Rack store will connect over 130 designer stores of the shopping center, which is situated northwest of downtown Chicago.
Further, this will be Nordstrom's eleventh Rack store in Chicago that is slated to open in fall 2016. Apart from this, Nordstrom operates four full-line stores in the state.
Nordstrom Rack, being the off-price retail segment of the company, offers fashion-savvy customers a wide range of on-trend apparel, footwear and other accessories at discounted prices. These Racks usually keep items from the main Nordstrom stores and its online store, Nordstrom.com. Alongside, these stores stack products from other major brands sold by the company.
Nordstrom's focus on store expansion is evident from the series of Rack store openings since the beginning of fiscal 2014. Its latest store openings signify the company's commitment toward strengthening its network with an aim to drive top-line growth.
At present, the company operates 323 outlets across 39 U.S. states and Canada, including 121 full-line stores; 2 Jeffrey boutiques; 194 Nordstrom Racks; and 1 clearance store.
Nordstrom carries a Zacks Rank #5 (Strong Sell) as the company recently posted dismal third-quarter fiscal 2015 results, followed by a lowered outlook for the fiscal. Quarterly adjusted earnings of 57 cents per share declined 21.9% from the prior-year quarter and missed the Zacks Consensus Estimate of 71 cents. Total revenue rose 6% to $3,328 million, but missed the Zacks Consensus Estimate of $3,371 million. Results were impacted by soft sales trends across all networks and merchandise categories.
However, better-ranked stocks in the same industry worth considering include Abercrombie & Fitch Co. ANF , with a Zacks Rank #1 (Strong Buy), American Eagle Outfitters, Inc. AEO and Foot Locker, Inc. FL , each carrying a Zacks Rank #2 (Buy).
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