Core Viewpoint - Nordstrom, Inc. (NYSE:JWN) is expected to benefit from a favorable macro environment, with a positive margin outlook and strong demand trends, despite a potential buyout offer that may not be accepted by the board [2][10]. Financial Performance - In 2Q24, JWN reported total retail sales growth of 3.4% year-over-year, resulting in revenue of $3.78 billion, which includes $109 million from credit card revenue, bringing total revenue to approximately $3.894 billion [3]. - Adjusted gross margin expanded by approximately 160 basis points from 35% in 2Q23 to 36.6% in 2Q24, contributing to an adjusted EBIT margin of 6.4%, a 140 basis point year-over-year increase [3][6]. Growth Outlook - The company is expected to continue benefiting from weak consumer spending, with Rack sales growing by 8.5% year-over-year and same-store sales increasing by 4.1% [4]. - JWN plans to open 12 additional Rack stores in the second half of 2024, following the opening of 5 stores in the previous quarter [4]. - The full-line business shows potential growth acceleration in 2H24, driven by strong sales in key brands and double-digit growth in beauty and active categories during anniversary sales [5]. Margin Outlook - The gross margin outlook is positive, with structural improvements expected to continue, driven by increased sales volume and reduced shrinkage as RFID investments are rolled out [6][7]. - The EBIT margin is projected to expand further in 2H24, with consensus estimates suggesting a target of approximately 3.7% [7]. Buyout Proposal and Valuation - JWN received a proposal for a going-private transaction at $23 per share, which equates to about 12 times FY25 P/E based on consensus estimates [8]. - The board is unlikely to accept this offer due to the lack of premium over the current share price, but it may establish a valuation floor [8]. - The stock could potentially trade up to approximately $23.80 based on FY26 EPS estimates, given the robust near-term demand outlook [8].

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 ...

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]

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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].

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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 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. ...

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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 ...