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Nordstrom Receives Go-Private Proposal From Nordstrom Family and Mexico's Liverpool
PYMNTS.com· 2024-09-04 20:04
Nordstrom has received a proposal from its CEO Erik Nordstrom, President and Chief Brand Officer Pete Nordstrom, other members of the Nordstrom family and Mexican omnichannel company El Puerto de Liverpoolto acquire all the outstanding shares of the company and take the company private. The proposal offers $23 per share in cash, the special committee of the board of directors of Nordstrom said in a Wednesday (Sept. 4) press release. "The special committee, composed of independent and disinterested directors ...
Nordstrom Family Makes $3.8B Offer To Take Retailer Private
Investopedia· 2024-09-04 18:10
Group 1 - CEO Erik Nordstrom and President Peter Nordstrom, along with Mexican retailer El Puerto de Liverpool, have made a bid to take Nordstrom private at $23 per share, valuing the company at approximately $3.8 billion [1][4] - The Nordstrom family holds a 33.4% stake in the company, while El Puerto de Liverpool owns nearly 10% [3][5] - The current offer represents a less than 1% premium over the stock's closing price on Tuesday [4] Group 2 - This is not the first attempt by the Nordstrom family to take the company private; previous efforts were made in 2017 and 2018, with the latter being a rejected bid of around $8.4 billion [5] - As of Wednesday, Nordstrom shares were trading at $22.92, reflecting a 0.4% increase, and have gained nearly 25% in value this year [6]
Nordstrom family bids to take retailer private for $3.8B
Proactiveinvestors NA· 2024-09-04 17:15
Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [1][2] - The news team operates from key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The team delivers news and insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] - Proactive adopts technology to enhance workflows and improve content production [3][4] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [4]
Nordstrom family offers $3.8B to take upscale department-store chain private
New York Post· 2024-09-04 16:43
Core Viewpoint - The Nordstrom family has made a $3.8 billion bid to take the company private, significantly lower than their previous offer of $8.4 billion in 2018, reflecting ongoing challenges in the department store sector due to declining mall traffic [1][2]. Company Summary - The Nordstrom family, which owns approximately 33.4% of the company's outstanding common stock, is partnering with Mexican department store chain El Puerto de Liverpool to offer $23 per share in cash for all outstanding shares [2][3]. - Under the proposed deal, the Nordstrom family would control 50.1% of the company [3]. - The company operates around 350 stores, including the off-price chain Nordstrom Rack [2]. Financial Performance - Nordstrom reported a 3.4% increase in sales for its 350 stores in the second quarter, with revenues reaching $3.9 billion and comparable sales up by 1.9% year-over-year [5][6]. - Despite the overall decline in department store sales over the past decade, Nordstrom's recent performance indicates some improvement [5][6]. Market Context - The department store sector is experiencing significant pressure, with other retailers like Macy's facing activist investor pressure to sell or go private [6]. - The recent bid from the Nordstrom family comes amid a trend of consolidation in the industry, exemplified by HBC's pending acquisition of Neiman Marcus for $2.65 billion [5]. Offer Dynamics - The $23 per share offer is close to the current stock price, which raises questions about the attractiveness of the bid [7]. - The involvement of El Puerto de Liverpool may provide leverage to negotiate a higher price, as the independent committee evaluates the proposal [8].
Should Value Investors Buy Nordstrom (JWN) Stock?
ZACKS· 2024-09-04 14:46
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuat ...
Nordstrom Family Makes $3.8 Billion Play To Take Company Private Again
Forbes· 2024-09-04 14:33
Core Viewpoint - The Nordstrom family has proposed a $3.8 billion offer to take the department store chain private, aiming to regain control of the company [1][2]. Group 1: Acquisition Proposal - The Nordstrom family, along with El Puerto de Liverpool, has made an offer to acquire all outstanding shares of Nordstrom, excluding those held by the family and Liverpool, at a price of $23.00 per share in cash [3]. - The financing for the acquisition will involve rollover equity and cash commitments from the Nordstrom family and Liverpool, along with $250 million in new bank financing, while existing company debt will remain [3][4]. Group 2: Financial Performance - For the second quarter ending August 3, Nordstrom reported net earnings of $122 million and earnings before interest and taxes of $190 million [5]. - Net sales increased by 3.4% compared to the same period in fiscal 2023, with total comparable sales rising by 1.9%. Notably, Nordstrom Rack saw net sales increase by 8.8% and comparable sales by 4.1% [6]. - The company's stock value has risen by 25% year-to-date, although the acquisition offer does not provide a premium over the current share price, which may limit shareholder interest [8]. Group 3: Strategic Focus - Nordstrom is focusing on enhancing its supply chain efficiency, achieving over 5% faster delivery times for online orders, which has led to improved conversion rates and reduced returns [7]. - The company has been expanding its off-price banner, Nordstrom Rack, opening 11 new locations this fiscal year, with plans to open at least 22 by year-end [7].
Nordstrom confirms buyout bid received from members of the founding family
MarketWatch· 2024-09-04 13:31
Nordstrom Inc. confirmed Wednesday that it has received a buyout bid from members of the family that founded the department-store chain and Mexico-based retailer El Puerto de Liverpool SAB. Under terms of the buyout proposal, Erik and Pete Nordstrom, other Nordstrom family members and Liverpool would pay $23 for each outstanding share JWN that they don't already own. That represents a 0.8% premium to Tuesday's closing price of $22.82. ...
Nordstrom Brothers Make Bid To Buy Back Nordstrom Department Store Chain
Forbes· 2024-09-04 13:30
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Special Committee of Nordstrom Board Confirms Receipt of Going-Private Transaction Proposal from Nordstrom Family and Liverpool
Prnewswire· 2024-09-04 12:25
SEATTLE, Sept. 4, 2024 /PRNewswire/ -- The special committee of the Board of Directors of Nordstrom, Inc. (NYSE: JWN) today confirmed receipt of a proposal from Erik and Pete Nordstrom, other members of the Nordstrom family, and El Puerto de Liverpool, S.A.B. de C.V. ("Liverpool") (BMV: LIVEPOL) to acquire all of the outstanding shares of the Company, other than shares held by members of the Nordstrom family and Liverpool, for $23.00 per share in cash. The proposal states that the merger consideration would ...
Nordstrom's Winning Formula: 3 Factors Behind the Stock's Success
MarketBeat· 2024-09-04 11:17
Core Viewpoint - Nordstrom Inc. is outperforming Macy's Inc. in terms of stock performance and financial results, with Nordstrom's stock up 21% year-to-date while Macy's is down 22.6% YTD [1] Group 1: Sales Performance - Nordstrom's Q2 2024 EPS was 96 cents, beating estimates by 25 cents, with revenue rising 3.2% YoY to $3.89 billion, surpassing consensus estimates of $3.88 billion [3] - In contrast, Macy's reported Q2 2024 EPS of 53 cents, beating estimates by 23 cents, but revenues fell 3.8% YoY to $4.94 billion, missing consensus estimates of $5.06 billion [2] Group 2: Comparable Sales - Nordstrom experienced a 1.9% YoY increase in comparable sales, while Macy's saw a 4% YoY decline [4] - The growth in Nordstrom's comparable sales was largely driven by a 4.1% increase in its off-brand Nordstrom Rack stores, which saw net sales rise 8.8% YoY [4] Group 3: Inventory Management - Nordstrom's inventory grew by 8.3% YoY, reflecting strong sales and effective inventory management, leading to a gross margin rate improvement of 155 basis points to 36.6% [5] - Macy's inventory rose 6% YoY, with a gross margin improvement of 240 basis points to 40.5%, but this was not directly comparable to the prior year due to accounting changes [6] Group 4: Market Trends - The off-brand retail trend is benefiting Nordstrom, as consumers increasingly seek affordable fashion, contrasting with Macy's less effective off-brand strategy [5] - Nordstrom has opened 11 Nordstrom Rack stores year-to-date, with plans for 12 more openings in the second half of 2024, indicating a strong commitment to its off-brand strategy [4] Group 5: Stock Performance and Analyst Ratings - Nordstrom's stock is currently trading above its consensus price target of $19.85, with the highest analyst price target at $25.00 [7] - Despite its strong performance, Nordstrom currently holds a "Reduce" rating among analysts, who suggest other stocks may be better buys [9]