It has been about a month since the last earnings report for Nordstrom (JWN) . Shares have added about 2.8% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Nordstrom due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Nordstrom Beats on Q2 Earnings, Updates FY24 Outloo ...

Shares of Nordstrom, Inc. (JWN) have surged 67.4% in the past year, outperforming the Zacks Retail - Apparel and Shoes industry's 8.4% decline, the broader Retail-Wholesale sector's 30.3% rise and the S&P 500 index's 31.4% growth. Its strategic efforts are on track. JWN is focused on driving the Nordstrom banner's growth, optimizing operations and building momentum at Rack. Digital efforts are also underway. Currently priced at $22.91, the JWN stock is trading at 4.7% to its 52-week high of $24.03, reached ...

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Core Viewpoint - The article compares Nordstrom (JWN) and Deckers (DECK) to determine which stock offers better value opportunities for investors [1] Valuation Metrics - JWN has a Zacks Rank of 1 (Strong Buy), indicating a stronger earnings outlook compared to DECK, which has a Zacks Rank of 2 (Buy) [3] - JWN's forward P/E ratio is 11.81, significantly lower than DECK's forward P/E of 29.59 [5] - JWN has a PEG ratio of 2.42, while DECK's PEG ratio is 2.74, suggesting JWN may be more attractive based on expected EPS growth [5] - JWN's P/B ratio is 3.88, compared to DECK's P/B of 11.45, indicating JWN is undervalued relative to its book value [6] - Based on these metrics, JWN holds a Value grade of A, while DECK has a Value grade of C [6] Earnings Outlook - JWN is noted for its improving earnings outlook, which enhances its attractiveness in the Zacks Rank model [7]

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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].