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Nordstrom Financial Analysis

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Nordstrom Financial Analysis
Executive Summary
This report examines the value of Nordstrom Inc. stock and offers existing shareholders and prospective shareholders an insight into the value of the company. The purpose of this report is to provide potential shareholders with information as to why they should buy into the company and existing shareholders with information as to why they should hold their stock.

Since Nordstrom opened, the company has achieved critical acclaim for outstanding customer service and inventory selection. Sales have always been on the rise with the exception of a slight dip after the economic recession, but were quickly regained with the expansion of Nordstrom Rack stores. To exemplify this, the company report is divided into four sections that have 3 corresponding sub-points:
• Company Background & Current Stage in Growth Lifecycle o History o Expansion o Inventory
• Detailed Financial Information-Microeconomics o Financial Reporting and Analysis o Investment & Stock Analysis/Options o Profitability and Value to Investors
• Industry, Landscape, Trends & Competitors-Macroeconomics o Sustainability o Competitive Advantage o Position in Market
• Recent Developments, Analyst Opinions and Wall Street Consensus o Management Interviews o Nordstrom Rack o Store Walk Through
Based off of information gathered from these sections it is recommended that current shareholders hold, while potential shareholders buy.
Introduction
In the year of 1928 Nordstrom emerged onto the retail scene and soon after became one of the premier department stores within the country. This was achieved by the owner’s quest to provide exceptional customer service not available at other stores, provide a wide range of modern inventory and promote expansion within the company. Nordstrom is a publicly traded company whose stock has been on the rise for a quite some time. With one minor period of decrease during the economic crisis, Nordstrom has been able to bounce back



Cited: Asaeda, Jason. comp. Standard & Poor’s Stock Report-Nordstrom Inc. Rep. McGraw-Hill, 2010. Web. 30 Oct. 2010 BATS, and Morningstar, Inc Stock Quote.” Business News, Stock Quotes, Investment Advice-Daily Finance. Trans. Thomas Reuters and Hoovers. Daily Finance-AOL Money & Finance, 08 Nov. 2010. Web. 08 Nov. 2010. Campbell, Christopher. "Rack Department Manager." Personal interview. 05 Nov. 2010. Clifford, Stephanie. "Nordstrom Links Online Inventory to Real World." NY Times. 23 Aug. 2010. Web. 22 Nov. 2010. . Fitch Ratings Gustafson, Krystina. "Will Nordstrom 's Discount Stores Hurt its Brand?" CNBC. 14 Apr. 2010. Web. 22 Nov. 2010. . Hoovers/D&B Company Larson, Yolanda. "Nordstrom Store Manager." Personal interview. 5 Nov. 2010. Mulady, Kathy. "100 Years of Nordstrom." Seattle News, Sports, Events, Entertainment | Seattlepi.com - Seattle Post-Intelligencer. Web. 30 Nov. 2010. . "Nordstrom, Inc “Nordstrom.com-Investor Relations-Annual Reports.” Nordstrom.com Nordstrom. Inc., 05 Nov. 2010. Web. 06 Nov. 2010. . Stadler, Kevin. "Stock Logistics Manager." Personal interview. 05 Nov. 2010. Silverstein, Barry. "Can Luxury Brands Sustain Themselves by Becoming Sustainable?" Brandchannel (16 Nov. 2010). Brandchannel.com | Always Branding. Always On. Web. 8 Dec. 2010. . Yahoo! “JWN:Summary for Nordstrom, Inc. Common Stock-Yahoo! Finance.” Yahoo! Finance-Business Finance, Stock Quotes, News. Yahoo! Finance, 08 Nov. 2010. Web. 08 Nov. 2010. .

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