Nordstrom Inc. (JWN) declared the launch of its Treasure&Bond (:TBD) brand yesterday.
This newly introduced brand is the company’s first private give-back label, as 5% of the profit generated from TBD will be allocated to nonprofits dedicated towards the empowerment of women and girls.
Products of the brand will be sold at the TBD section of 86 company stores all over the country and online. Clothing will include washed denim, moto jackets, tees, soft checkered shirts and so on. The brand will offer lucrative deals like offering denims of all kinds for less than $100.
As mentioned above, Nordstrom’s primary aim behind launching Treasure&Bond was to help the community, particularly organizations that support the cause of women empowerment. One of the organizations benefiting largely from the brand is Girls Inc. which leads the way for girls to emerge strong and bold. The organization provides over 138,000 girls with experiences, programs and tools required to bravely face challenges.
Hence, the launch of Treasure&Bond will not only provide Nordstrom’s customers with trendy and fashionable clothes, but it will also take the company forward on its path to serve the community.
Nordstrom is also expanding its product range for men as recently it entered an agreement to acquire Trunk Club – a provider of personalized clothing services for men – for an undisclosed amount.
We believe that the proposed acquisition, which is scheduled to close in the third quarter – strategically fits Nordstrom’s business model. It will not only enhance the company’s capability of serving male customers but also expand its online clothing services for men, in which it invested two years back by acquiring Bonobos.
For the past few years, men’s clothing business has been growing tremendously, which has prompted many large retailers to enhance the segment’s square footage in stores as well as introduce luxury product lines for men. Moreover, this year witnessed the purchase of Jos. A. Bank by The Men's Wearhouse Inc. (MW), an important acquisition in the men’s clothing business.
Therefore, the importance of the acquisition of Trunk Club for Nordstrom’s growth can be gauged.
Other Stocks to Consider
Currently, Nordstrom carries a Zacks Rank #4 (Sell). However, some better-ranked stocks in the same industry are Citi Trends, Inc. (CTRN) and Zumiez, Inc. (ZUMZ), each carrying a Zacks Rank #1 (Strong Buy).