Markets

Nordstrom Nears FY17 Canadian Goal with 2nd Toronto Store

An image of a pen, a tablet and a calculator
Credit: Shutterstock photo

Apart from fortifying its domestic presence, Nordstrom Inc.JWN has been keen on expanding in Canada, backed by the impressive response received from that country. Much in line with this strategy, the company is on the verge of achieving its fiscal 2017 target of opening six full-line stores in the country. Notably, Nordstrom opened its fifth full-line Canadian store on Oct 21, which also marked its second store in Toronto.

Spanning over 199,000 square feet, the store is housed at the Yorkdale Shopping Centre. The opening was a one-off event that saw a "Beauty Bash" hosted right outside the store. This in itself was a major attraction for customers. Nordstrom opened its first Toronto store last month, at the CF Toronto Eaton Centre, which marked the company's second global flagship location.

Coming back to the newly opened store in Toronto, this three-storied outlet provides a wide assortment of merchandise from designers like Celine, Dries Van Noten and Valentino to renowned names like NIKE, Inc. NKE and Madewell, thus covering items from a lower to higher price point.

Alongside, this flagship store will offer a dozen designer clothing and handbag boutiques with various services to enrich customers' experience. These include Same-Day Delivery Service, Language Ambassadors and a JWN Private Shopping Suite, among others. Additionally, this store will include a full-service restaurant and bar, cocktail lounge and specialty coffee bar - thus catering to food demands.

We think that these services and the strategic location of the new store are likely to draw traffic, and augment Nordstrom's performance. While this marks the second last out of the company's six targeted Canadian stores, the last planned outlet is also expected to open in Toronto - in CF Sherway Gardens, on Sep 15, 2017.

Nordstrom has been persistently focusing on its store expansion strategy as the opening of new stores is not only expected to attract customers but also boost the company's top line via synergies across other channels. We believe with its solid brand image, amendments to the operating model for cost savings and continuous store expansion, this Zacks Rank #3 (Hold) company is well positioned to deliver on its long-term goals.

NORDSTROM INC Price

NORDSTROM INC Price | NORDSTROM INC Quote

Stocks to Consider

Better-ranked stocks in the same space include Tilly's, Inc. TLYS , with a Zacks Rank #1 (Strong Buy) and American Eagle Outfitters, Inc. AEO with a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Tilly's has an average positive earnings surprise of 73.7% over the trailing four quarters. The stock, with a long-term growth rate of 15.5%, has seen positive estimate revisions in the last 60 days.

American Eagle has to its credit a spectacular earnings trend, as the company has delivered a positive earnings surprise over the past four quarters. Moreover, its long-term EPS growth rate of 11.8% and positive estimate revisions over the past 60 days help it stand strong against the industry.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>

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

AMER EAGLE OUTF (AEO): Free Stock Analysis Report

NORDSTROM INC (JWN): Free Stock Analysis Report

NIKE INC-B (NKE): Free Stock Analysis Report

TILLYS INC (TLYS): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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


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

In This Story

TLYS JWN NKE AEO

Other Topics

Stocks

Latest Markets Videos