Report
Valens Research

JWN - Embedded Expectations Analysis - 2021 02 22

Nordstrom, Inc. (JWN:USA) currently trades near historical lows relative to UAFRS-based (Uniform) assets, with a 1.1x Uniform P/B. At these levels, the market is pricing in expectations for profitability to remain near historical lows, but management is confident about their digital business, cash savings, and their designer business

Specifically, management is confident more than half of their business is now digital and that digital shopping trends are accelerating. Furthermore, management is confident customers are responding well to new merchandise initiatives, that they expect better cost savings flow through in 2021, and that the designer business continues to be strong
Underlying
Nordstrom Inc.

Nordstrom is a fashion retailer providing a selection of brand-name and private label apparel, shoes, cosmetics and accessories for women, men, young adults and children. The company serves customers through two businesses: Full-Price and Off-Price. The company's operations consist of the company's Nordstrom U.S. and Canada full-line stores, U.S. and Canada Nordstrom Rack stores, Jeffrey boutiques, Last Chance clearance stores, Trunk Club clubhouses and Nordstrom Local. Additionally, customers are served online through Nordstrom.com, Nordstromrack.com, HauteLook and TrunkClub.com.

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Valens Research
Valens Research

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