A sign marks the location of a Nordstrom store in a shopping mall on March 20, 2024 in Chicago, Illinois.The Nordstrom family is once again considering taking the department store private and has formed a special committee to evaluate bids, it announced on Thursday. CEO Erik Nordstrom and president Pete Nordstrom recently told the company's board of directors that it's interested in pursuing a take private deal for the 123-year-old department store, Nordstrom said in a news release. As a result, the board f ...

Nordstrom Inc. (JWN) success story hinges on the advancements made in fiscal 2023 toward enhancing customer experience and bolstering financial performance. In fiscal 2023, Nordstrom remained focused on improving its merchandise assortment by effectively managing its inventory levels, and making strategic investments in products and brands that align with customer preferences.The company achieved robust results in fiscal 2023 mainly backed by its focus on three priorities, including improving Nordstrom Rack ...

The U.S. retail industry may be on the brink of a significant transformation as department store chains Nordstrom and Macy’s consider a shift toward private-equity or hedge-fund ownership.These potential moves could have extensive implications for the retail sector, reshaping the landscape of the industry, Reuters reported Wednesday (March 20).Over the past decade, only 7% of the total U.S. private equity deal volume was invested in retail and consumer companies, the report said, citing Dealogic data. Howev ...

Shares of Nordstrom (JWN 9.38%) climbed 9.4% on Tuesday amid reports that the department store chain is exploring options to go private.Reaching out to private equity firmsAccording to "people familiar with the matter" speaking with Reuters earlier today, Nordstrom's founding family has engaged investment banks Morgan Stanley and Centerview Partners to reach out to private equity firms to gauge their interest in a potential deal. The timing of the news is no coincidence; Nordstrom shares dropped hard earlie ...

Financial Performance - In 2023, the company reported net earnings of $134 million, representing 0.9% of net sales, with an adjusted EPS of $2.12[138]. - Total net sales decreased by 5.8% to $14,219 million, with Nordstrom sales down 8.2% and Nordstrom Rack sales down 0.6% compared to 2022[151]. - Digital sales accounted for 36% of total net sales, decreasing by 10% year-over-year[151]. - Adjusted EBIT for 2023 was $567 million, or 4.0% of net sales, reflecting the company's focus on profitability despite challenges[138]. - Gross profit decreased by $157 million to $4,916 million, with gross profit as a percentage of net sales increasing to 34.6% from 33.6% in 2022[158]. - EBIT decreased by $214 million to $251 million, with EBIT as a percentage of net sales dropping to 1.8% from 3.1% in 2022[162]. - Net earnings for fiscal year 2023 were $134 million, down 45.3% from $245 million in 2022[231]. - Diluted EPS decreased by $0.69 to $0.82, primarily due to the unfavorable impact of $1.30 per diluted share related to the wind-down of Canadian operations[166]. Inventory and Sales - The company ended 2023 with overall inventory levels 3% lower than Q4 2022, resulting in a 95 basis points expansion in gross profit as a rate of sales[139]. - Ending inventory decreased by 3% compared to January 28, 2023, while sales increased by 2% in the fourth quarter of 2023 compared to 2022[159]. - Merchandise inventories decreased by $61 million during the fiscal year[238]. - The company recorded a sales return reserve that could impact EBIT by approximately $20 million for a 10% change in the reserve[200]. Operational Changes - The wind-down of Canadian operations negatively impacted net sales by 245 basis points, partially offset by a 130 basis point positive impact from the 53rd week[151]. - Nordstrom opened 19 Nordstrom Rack stores and closed a total of 4 stores, including 1 Nordstrom store and 2 Nordstrom Rack stores, while deconsolidating 13 stores in Canada[155]. - The company plans to launch a digital marketplace on Nordstrom.com to expand its online assortment and drive GMV growth in 2024[141]. - Nordstrom Canada commenced a wind-down of its operations on March 2, 2023, with total pre-tax charges of $284 million related to the wind-down process[297]. Expenses and Cash Flow - SG&A expenses decreased by $191 million to $4,855 million, with SG&A as a percentage of net sales increasing to 34.2% from 33.4% in 2022[160]. - Free Cash Flow for 2023 was $54 million, a significant decrease from $459 million in 2022, with net cash provided by operating activities at $621 million[190]. - The company incurred Canada wind-down costs of $284 million in fiscal year 2023, impacting overall earnings[231]. - The company recognized $52 million in stock-based compensation expense in 2023, compared to $79 million in 2022[238]. Debt and Financial Position - As of February 3, 2024, total debt was $2.862 billion, with adjusted debt to EBITDAR at 2.9[196][198]. - The company had no borrowings outstanding under its Revolver as of February 3, 2024, with a short-term borrowing capacity reduced to $770 million due to a standby letter of credit[192]. - Long-term debt as of February 3, 2024, was $2,612 million, down from $2,856 million in the previous year[234]. - The total long-term debt as of February 3, 2024, was $2,862 million, slightly up from $2,856 million as of January 28, 2023[314]. Shareholder Returns - Dividends paid in 2023 amounted to $123 million, maintaining a dividend per share of $0.76, consistent with 2022[185]. - The company expects to continue its dividend payment levels throughout 2024, having declared a quarterly dividend of $0.19 per share in February 2024[186]. - Share repurchases in 2023 were minimal, with only 0.03 million shares repurchased for $1 million compared to 2.8 million shares for $62 million in 2022[184]. Regulatory and Compliance - The company is currently evaluating the impact of new SEC climate-related disclosure rules, effective in Q4 2025[213]. - The Ontario Superior Court of Justice is overseeing the wind-down process, with significant developments expected in the first quarter of 2024[296]. - The company was in compliance with all financial covenants under the Revolver as of February 3, 2024[320].

Key TakeawaysFounding family members of Nordstrom reportedly are looking at taking the upscale retailer private.Sources told Reuters the family members have asked Morgan Stanley and Centerview Partners to investigate whether any private equity firms might want to buy the company.Family members previously looked into taking Nordstrom private, but their roughly $8.4 billion offer was rejected by the company's board in March 2018. Shares of Nordstrom Inc. (JWN) surged Tuesday on a report that the founding fami ...

Nordstrom’s founding family is reportedly mounting another effort to take the retailer private.The department store chain is in negotiations with banks on the deal, Reuters reported Tuesday (March 19), citing unnamed sources.In 2017, Nordstrom put together a special committee to consider a buyout deal, discussing the option with several private equity firms. In 2018, the committee rejected an $8.4 million bid as insufficient, according to the report.PYMNTS contacted the company for comment but did not recei ...

The founding family behind Nordstrom is seeking to take the department store operator private, six years after a similar attempt proved unsuccessful, people familiar with the matter said Tuesday.The deal deliberations come as Nordstrom and other US retailers grapple with consumers curbing their discretionary spending following a bout of inflation and high interest rates. Macy’s, another department store operator, has also become a takeover target.The deal deliberations come as Nordstrom and other US retaile ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Nordstrom (NYSE:JWN) stock is in the news Tuesday as reports claim that the company’s founding family is seeking to take it private.According to these reports, the founding family of the fashion retailer is seeking aid from Morgan Stanley and Centerview Partners in this effort. This has it requesting them to contract private investment firms that may be willing to assist in taking Nordstrom private.It’s worth noting that this isn’t the first time that the family behid Nordstrom has tried to take it private. ...