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. ...

Nordstrom, Inc. (JWN) has been making efforts to drive efficiency in its business and enrich customer experience. The company has been making improvements in the Nordstrom Rack banner, driven by an increase in its strategic brand penetration. In the latest developments, the company said that it is redefining its flagship brand to give it a trendy look. It will redesign its namesake brand with a style-driven and top-quality assortment.These collections will offer tailored classics with minimalist pieces for ...

The new Nordstrom brand reflects timeless pieces with an emphasis on versatile styling, offering approachable silhouettes across Women's and Men's SEATTLE , March 18, 2024 /PRNewswire/ -- Nordstrom is redefining its namesake brand with a new assortment of high quality, style-driven essentials. The Nordstrom team of designers created styles that reinvent traditional silhouettes to be versatile across occasion, season and individual. Each piece has been designed with an emphasis on premium fabrics and detail ...

Some stocks just aren’t worth owning. This is especially true when the company has fallen on hard times, lost its competitive edge, and is trying to turnaround its business. While investors might be attracted to the stock of a company that is in turnaround mode, especially if that company is a storied brand that was once dominant in its sector, it’s worth heeding the words of Warren Buffett who said “turnarounds seldom turn.” If a company is consistently missing its earnings targets, issuing weak forward gu ...

Key PointsRoss Stores had a solid quarter and issued favorable guidance, helping to support the market. Nordstrom continues to struggle with growth as shoppers tighten discretionary spending habits.Both stocks are trending strongly and present opportunities for traders and investors. 5 stocks we like better than Ross StoresResults from the retail sector are a mixed bag, revealing shifting consumer habits that will impact results for the remainder of the year. Stocks like Ross Stores NASDAQ: ROST and Nordstr ...