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Nordstrom Inc. (JWN). Michael Dietrich 11/2/11. Business Summary. Retailer that offers apparel, shoes, cosmetics, and accessories for men and women. 222 stores. 117 full line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure and bond store, and 1 clearance store.
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Nordstrom Inc. (JWN) Michael Dietrich 11/2/11
Business Summary • Retailer that offers apparel, shoes, cosmetics, and accessories for men and women. • 222 stores. 117 full line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure and bond store, and 1 clearance store. • 90% revenue comes from its retail stores, the other from website, catalog, and private label credit card.
Key Statistics • Recent Price: $50.52 Div.& Yield: .92 (1.80%) • Fair Value: $43.00 • Consider Buy: $25.80 • Consider Sell: $66.70 • Market Cap: $10.69B • P/E (ttm): 16.71 • EPS (ttm): 3.01
SWOT (Strengths) • They have managed inventory levels during the economic downturn • Added an IT department • Online sales continue to grow
SWOT(Weakness) • Credit card business adds an element of risk for the company • Sells mainly discretionary goods, exposed to economic swings
SWOT(Opportunities) • 122 stores domestically so still room for expansion • Mobile check out devices
SWOT(Threats) • High competition • Saks offers affordable luxury items • Macy’s upgrading its merchandise assortment • Consumer Spending (cyclical)
Morningstar Recommendations • Buy: 12 • Outperform:2 • Hold: 5 • Underperform: 0 • Sell: 1