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1. Company Snapshot

1.a. Company Description

Nordstrom, Inc., a fashion retailer, provides apparels, shoes, beauty, accessories, and home goods for women, men, young adults, and children.It offers a range of brand name and private label merchandise through various channels, such as Nordstrom branded stores and online at Nordstrom.com; TrunkClub.com; Nordstrom.ca; Nordstrom stores; Nordstrom Rack stores; Nordstrom Locals; Nordstromrack.com and HauteLook; clearance stores under the Last Chance name; Trunk Club clubhouses; and Jeffrey boutiques.As of December 31, 2021, the company operated 94 Nordstrom stores and 240 Nordstrom Rack stores in the United States; 2 clearance stores; and 7 Nordstrom Local service hubs, as well as 6 Nordstrom stores and 7 Nordstrom Rack stores in Canada.


Nordstrom, Inc.was founded in 1901 and is headquartered in Seattle, Washington.

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1.b. Last Insights on JWN

Nordstrom's recent performance is driven by robust holiday sales, enhanced digital capabilities, and strategic growth initiatives at Nordstrom Rack. The company's focus on expansion and digital transformation has positioned it for continued success despite macroeconomic headwinds. The upgrade to a Buy rating, reflecting growing optimism about earnings prospects, is also a positive driver. Furthermore, the company's attractive valuation, despite its fast-paced momentum, makes it a great choice for investors.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Nordstrom Rack to Open New Location in Spokane, WA

Nov -04

Source: prnewswire.com

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NuORDER by Lightspeed Extends Partnership with Nordstrom as Retailer Invests in Data-Driven Wholesale Strategies

Oct -29

Source: businesswire.com

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Nordstrom Rack to Open New Location in Encinitas, CA

Jul -29

Source: prnewswire.com

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Luxury retailer Nordstrom closing stores in two states by end of August

Jul -09

Source: nypost.com

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Nordstrom Rack to Open New Location in Flower Mound, TX

Jun -09

Source: prnewswire.com

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Nordstrom Rack to Open New Location in Suwanee, GA

Jun -09

Source: prnewswire.com

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Nordstrom Stock Just Delisted. Macy's and Dillard's Are the Department Stores Left Standing.

May -21

Source: barrons.com

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Nordstrom Announces Completion of Acquisition by Nordstrom Family and Liverpool

May -20

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.83%)

6. Segments

Retail

Expected Growth: 4.83%

Nordstrom's 4.83% retail growth is driven by its successful omnichannel strategy, investments in digital capabilities, and enhanced customer experiences. Additionally, the company's focus on private label brands, such as Nordstrom Rack and Trunk Club, has contributed to increased sales. Furthermore, strategic partnerships and loyalty programs have helped to drive customer retention and acquisition.

7. Detailed Products

Women's Apparel

Nordstrom offers a wide range of women's clothing, including dresses, tops, pants, skirts, and outerwear from popular brands and designer labels.

Men's Apparel

Nordstrom provides a variety of men's clothing, including suits, dress shirts, jeans, and casual wear from popular brands and designer labels.

Kids' Apparel

Nordstrom offers a range of kids' clothing, including casual wear, dressy outfits, and outerwear for boys and girls from popular brands.

Shoes

Nordstrom sells a wide selection of shoes for women, men, and kids, including boots, heels, flats, sneakers, and sandals from popular brands.

Handbags and Accessories

Nordstrom offers a variety of handbags, wallets, scarves, hats, and jewelry from popular brands and designer labels.

Beauty and Fragrances

Nordstrom sells a range of beauty products, including skincare, makeup, fragrances, and haircare from popular brands.

Home and Gifts

Nordstrom offers a selection of home decor, kitchenware, and gifts, including candles, vases, and gourmet food items.

8. Nordstrom, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Nordstrom's customers have some alternatives, but the company's strong brand image and loyalty programs help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Nordstrom's customers have significant bargaining power due to the availability of substitutes and the company's dependence on a few large vendors.

Bargaining Power Of Suppliers

Nordstrom has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's large size and scale also give it negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the retail industry, including the need for significant capital investment and established relationships with suppliers.

Intensity Of Rivalry

The retail industry is highly competitive, with many established players competing for market share. Nordstrom faces intense rivalry from other department stores and online retailers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 78.53%
Debt Cost 3.95%
Equity Weight 21.47%
Equity Cost 16.97%
WACC 6.74%
Leverage 365.80%

11. Quality Control: Nordstrom, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Dillard's

A-Score: 6.9/10

Value: 5.1

Growth: 6.9

Quality: 7.1

Yield: 8.0

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Nordstrom

A-Score: 5.7/10

Value: 7.0

Growth: 3.8

Quality: 4.2

Yield: 5.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Macy's

A-Score: 5.3/10

Value: 8.1

Growth: 2.7

Quality: 4.3

Yield: 7.0

Momentum: 6.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Meritage Homes

A-Score: 5.2/10

Value: 8.4

Growth: 5.3

Quality: 6.5

Yield: 3.0

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Kohls

A-Score: 4.6/10

Value: 9.0

Growth: 2.4

Quality: 3.2

Yield: 9.0

Momentum: 2.5

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Murphy USA

A-Score: 4.3/10

Value: 4.2

Growth: 8.0

Quality: 4.1

Yield: 1.0

Momentum: 1.5

Volatility: 7.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.66$

Current Price

24.66$

Potential

-0.00%

Expected Cash-Flows