Nordstrom's (JWN) Expansion on Track With New Texas Rack Store
Nordstrom Inc. JWN has been on track with its store expansion plans. In its latest initiative, the company announced plans to open a Nordstrom Rack in Houston, TX. The new store is slated to open doors in fall 2024.
The 34,000-square-foot store will be located in Meyerland Plaza — one of the top five shopping centers in Texas. Nordstrom’s new Rack store will share space with more than 50 retail stores and restaurants in this open-air center, including Target, Dick's Sporting Goods, JCPenney, Ross, Marshalls and Old Navy.
The Meyerland Plaza is owned and managed by Fidelis. The shopping center is strategically situated on the hard corner of Loop 610 and Beechnut Street.
The addition of Nordstrom Rack is expected to elevate the shopping center's profile, attracting both local shoppers and visitors to the area. In line with modern retail trends, this new store in Houston will focus on providing a seamless and convenient shopping experience.
The store’s features include the ability for customers to pick up online orders from Nordstrom.com and NordstromRack.com at the Houston location. Additionally, the store will facilitate easy returns, making the shopping experience more seamless and user-friendly.
What’s More?
Nordstrom remains focused on its long-term strategy, which builds on its market strategy to capitalize on its digital-first platform to better serve customers, gain market share and deliver profitable growth. For this, the company is focused on three areas — winning in the most important markets, expanding the reach of Nordstrom Rack and enhancing its digital velocity.
Also, JWN remains focused on the closer-to-you strategy, which aims to link stores and services to expedite deliveries, expand online offerings and add cheaper merchandise at its Rack off-price stores, to improve customers' shopping experiences. Increased focus on distribution capabilities, along with improved connectivity of physical and digital inventory are likely to contribute $2 billion to Nordstrom Rack sales in the long term.
As part of the strategy, Nordstrom earlier issued a long-term outlook. It predicted revenues to grow in the low-single digits on an annual basis, with operating income outpacing revenues in the long term. The EBIT margin is expected to be more than 6%, with an annual operating cash flow of more than $1 billion. Capital expenditure is likely to be 3-4% of sales.
Wrapping Up
The opening of a Nordstrom Rack in Houston demonstrates the company’s dedication to broadening its footprint and delivering an improved shopping experience to a broader customer base. This expansion aligns with its objectives and emphasizes its commitment to contributing positively to the communities that it serves.
The Zacks Rank #3 (Hold) stock has gained 28.7% in the past three months compared with the industry’s growth of 32.2%.
Image Source: Zacks Investment Research
Three Solid Picks
A few better-ranked stocks are Abercrombie & Fitch Co. ANF, Deckers Outdoor Corporation DECK and American Eagle Outfitters Inc. AEO.
Abercrombie operates as a specialty retailer of premium, high-quality casual apparel. It currently sports a Zacks Rank #1 (Strong Buy). The company recorded an EPS surprise of 60.5% in the last reported quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie’s current fiscal-year sales suggests growth of 13.3% from the year-ago reported number. ANF has a trailing four-quarter earnings surprise of 713%, on average.
Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities. It flaunts a Zacks Rank #1 at present.
The Zacks Consensus Estimate for Deckers’ current financial-year sales and earnings indicates growth of 11.7% and 21.3%, respectively, from the year-ago reported numbers. DECK has a trailing four-quarter earnings surprise of 26.3%, on average.
American Eagle Outfitters is a specialty retailer of casual apparel, accessories and footwear. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal-year sales and earnings indicates growth of 4% and 39.2%, respectively, from the previous year’s reported figures. AEO has a trailing four-quarter average earnings surprise of 23%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report
American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report
Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Nordstrom, Inc. (JWN) : Free Stock Analysis Report
