Commodity Channel Index
|Bid||21.33 x 900|
|Ask||23.27 x 900|
|Day's Range||19.14 - 21.55|
|52 Week Range||12.27 - 43.37|
|Beta (5Y Monthly)||0.68|
|PE Ratio (TTM)||6.13|
|Earnings Date||Aug 19, 2020 - Aug 24, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Mar 09, 2020|
|1y Target Est||20.83|
(Bloomberg Opinion) -- Anyone who has ever waited at Primark to pay for cheap workout attire or a bargain dress knows just what a challenge it is to keep the snaking line in the right place. With precautions to control the novel coronavirus’s spread, that logistical nightmare will get even worse. Every second cash register will be shut and there’ll be an employee in charge of enforcing the regimented flow of customers — in one way and out another.Social-distancing rules governing shops are just one of the reasons why any honeymoon for retailers in the first days of reopening may be short lived. Many will soon have to confront hard decisions about whether to shut some stores definitively and how to fend off online competition in a world where people may still be hesitant to go out to shop. Recovery will be a long slog, with more pressure on profits than before the Covid-19 outbreak.Non-essential stores in England, which were forced to close in March, will be permitted to open from June 15. Early indications are good. Ikea stores on the outskirts of London and in the West Midlands drew huge queues when the purveyor of flat-packed furniture (classified as essential) reopened earlier this week. In the U.S., where some states have moved quickly to reopen for business, signs have been encouraging — at least until the civil unrest that forced some store closures again.Take TJX Cos., owner of T.J. Maxx, one of the most touchy-feely retail experiences. It might seem that treasure hunting for a designer gem would be less appealing during a pandemic. But in late May the company said that overall, sales were above the year-earlier period in the 1,100 stores that had been open for at least a week. Even Macy’s Inc., which got caught in the department-store maelstrom, said sales were moderately higher than anticipated.It’s a similar picture in Europe. Earlier this week, Primark, owned by Associated British Foods Plc, said that suburban outlets, such as the one in Hilversum in the Netherlands, were comfortably ahead, even though sales in city-center stores in Berlin and Amsterdam were at less than half of what they were a year ago.There will be pent-up demand when stores open in England, too. During lockdown, online shopping has flourished. Initially, demand was for home furnishings and clothing basics, such as underwear and workout gear. But warm weather, along with a slew of special offers, has encouraged more fashion purchases, such as day dresses, over recent weeks. More markdowns, needed to clear out unsold spring and summer stock, could prompt people to splurge when they can get back out to shop again.But a surge at the reopening doesn’t necessarily mean an enduring rebound. The pandemic has had great human and economic costs, with U.K. unemployment expected to spike in the second quarter. Even if their finances have held up, furloughed workers may be reluctant to spend. People make the most drastic changes to their spending when they lose their job or see their friends and family being laid off. Meanwhile, even though economies are gradually reopening, cancelled weddings, parties and overseas holidays will likely mean a lower level of clothing demand for the remainder of this year.Those who do feel brave enough to splash out may get frustrated with long waits to get into stores or check out. That could be bad news for discount retailers that rely on a high number of relatively low-value transactions. Primark could be hardest hit by social-distancing measures at its busiest stores, which accounted for 10-20% of its total sales before the pandemic, parent Associated British Foods said.Store closures during lockdown pushed even more people to shop online, a trend that’s likely to continue. The digital share of non-food sales in the U.K. could increase to 41% over the next 18 months or so, from about 30% at the end of 2019, according to Richard Hyman, the independent retail analyst. Shifting business online comes with additional costs too.All of these forces will make chains think hard about which stores are worth keeping in their networks. In the U.S., Nordstrom Inc. said it would close 16 of its 116 department stores. Expect similar decisions in Europe, especially if the additional costs associated with equipping stores for social distancing can’t be shared with landlords in the form of lower rents.But some companies are poised to make the most of the turmoil. While Primark may have to deal with some tricky in-store logistics, it should still emerge a winner, given its focus on value, along with cheap-chic rivals Hennes & Mauritz AB and Inditex SA’s Zara. Perhaps that’s why Primark, which has shunned online commerce, is actually opening new stores — such as in Manchester’s Trafford Centre — rather than closing any. Online retailers such as Germany’s Zalando SE and Britain’s Asos Plc, as well as companies with big digital businesses, such as Next Plc, should also be well placed.But even for the winners, the next year or so will be testing. The changes roiling the industry in the space of these five months would have taken five years in normal times. That’s a lot for even the most nimble retailers to deal with. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
By pulling all the levers at its disposal to limit inventory, the department store chain has freed up future time and money.
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Here's why stocks continue to be in rally mode despite the horrors sweeping America right now.
Shares of Nordstrom (NYSE: JWN) were up 2.8% on Monday after a Morgan Stanley analyst reiterated her hold rating on the stock, but set her price target at $21 a share, some 30% above its current price. The department store chain reported a massive $521 million first-quarter loss last week as the coronavirus pandemic took its toll, with sales plunged 40% to about $2 billion. No one was expecting any retailer to report good results this past quarter, and Nordstrom didn't surprise in that regard, yet the chain has sufficient liquidity to finance a comeback with approximately $1.4 billion in cash.
Nordstrom (JWN) reported its quarterly earnings on Friday, and the results were grim. Net sales dropped 40%, worse than the 33% decline expected by analysts.The company recorded an operating loss of $521 million for the quarter for a loss per share of $2.23. This represented a decrease from net earnings of $37 million during the same period in fiscal 2019, and fell starkly short of Street expectations of a $0.95 loss per share for the quarter. Its shares closed on Friday at $16.13, down more than 12% for the day.Nordstrom shuttered all of its stores on March 17. Some reopened in early May, while those in its key markets—California, New York and Washington—remain closed. Disappointingly, Nordstrom reported online-sales growth of only 5% in the quarter. As a result, Nordstrom reported that its SG&A expenses ballooned to 55% of net sales, compared with 34% of net sales for the same period in fiscal 2019.The family-run retailer started the year well, experiencing sales growth in the fourth quarter after four consecutive quarters of negative year-over-year sales growth. It seemed that investments in e-commerce and a cautious approach to physical stores had helped Nordstrom stay ahead of the department store pack.Nordstrom Rack -- Nordstrom's off-price unit -- posted particularly weak numbers, partly because it initially was not able to to fulfill online sales through its stores. That capability was enabled by mid-April. Nordstrom's reported that at the Nordstrom Rack locations that have reopened, sales have exceeded expectations thus far.Even prior to Friday, it had been a brutal year for Nordstrom stock, having already dropped 56% year to date through Thursday. Analysts have a Moderate Sell consensus on Nordstrom and an average price target of $21 a share, although the poor results Nordstrom exhibited in the last quarter has pulled down the most recent price targets.On Friday Jay Sole of UBS pulled down his price target to just $12. Nevertheless, the current price target of $21 represents 30% upside potential over the next 12 months. (See Nordstrom stock analysis on TipRanks).Related News: Papa John’s U.S. Pizza Sales Jump 33.5%; Shares Pop 7% In Pre-Market Boeing Gets No Orders in April, Customers Cancel 737 MAX Jets Alibaba Scores Earnings Beat With Revenue Surging 22% Y/Y More recent articles from Smarter Analyst: * Novavax Surging On $60M Funding For Covid-19 Vaccine Candidate * Facebook To Start Labeling State-Controlled Media Ahead of US Elections * Broadcom Reports Solid Results, Dividend As Analysts Boost PTs * Slack Plunges 15% Post-Print Despite Multi-Year Amazon Deal
But the fashion companies revealed even more about themselves and the industry with tough quarterly updates.
Retail giant Target shuttered stores across the U.S. as retailers already reeling from closures due to the coronavirus pandemic shut stores amid protests that included looting in many U.S. cities on Sunday. Protests turned violent in places including New York and Chicago in the wake of the death in Minneapolis of a black man, George Floyd, seen on video gasping for breath as a white police officer knelt on his neck. In the nearby Grove Shopping Center, which houses 51 upscale stores, Nordstrom, Ray Ban and Apple were broken into.
The upscale retail giant took its medicine in the first quarter, clearing out aging inventory so that it will be able to capitalize on opportunities in the quarters ahead.
U.S. stocks finished mostly higher on Friday after President Donald Trump announced measures against China in response to new security legislation that were less threatening to the U.S. economy than investors had feared. The Dow ended the session slightly lower, but all three indexes rose for the week and registered a second straight month of gains.
U.S. stocks finished mostly higher on Friday after President Donald Trump announced measures against China in response to new security legislation that were less threatening to the U.S. economy than investors had feared. The Dow ended the session slightly lower, but all three indexes registered gains for the month and the week. The S&P 500 initially extended losses after Trump said he was directing his administration to begin the process of eliminating special treatment for Hong Kong in response to China's plans to impose new security legislation in the semi-autonomous territory.
Shares of Nordstrom have been weak this year and were downgraded to a sell recommendation today by TheStreet's Quant Ratings service. In this daily bar chart of JWN, below, we can see that prices peaked in January and declined into early April which is a weaker performance than the broad market. The trading volume has been heavier than average since March but the direction of the On-Balance-Volume (OBV) line has been disappointing.
Wall Street's main indexes retreated on Friday as investors were cautious ahead of a U.S. response to China's national security law on Hong Kong that threatens to take some shine off another month of strong gains for the stock market. President Donald Trump, who has warned of a tough response to China's move, is expected to hold a news conference at 2 p.m. ET (1800 GMT).
Yahoo Finance's Emily McCormick joins The First Trade to break down new economic data from the U.S. Bureau of Economic Analysis including personal income and personal spending during the month of April, in addition to Costco and Nordstrom earnings report.
At this time, I'll turn the call over to Trina Schurman, Director of Investor Relations for Nordstrom. Participating in today's call are Erik Nordstrom, Chief Executive Officer; and Anne Bramman, Chief Financial Officer, who will provide a business update and discuss the company's first quarter performance for 2020.
Investor reaction to Nordstrom's (NYSE: JWN) first-quarter 2020 earnings report seems mixed, at least as indicated by after-hours trading, with share prices rapidly see-sawing between positive and negative territory. The company's earnings per share missed both GAAP and non-GAAP Wall Street expectations, coming up at -$2.25 and -$0.96, respectively. Analysts forecast revenues would amount to $2.27 billion, or $150 million more than the $2.12 billion Nordstrom actually managed to deliver.
As of today, approximately 40% of the company's fleet is now open.
Nordstrom (JWN) delivered earnings and revenue surprises of -84.30% and -9.98%, respectively, for the quarter ended April 2020. Do the numbers hold clues to what lies ahead for the stock?
Disappointing top- and bottom-line results isn’t great news. Yet given how poorly the department-store group has fared, investors may be relieved that today’s report wasn’t worse.
Nordstrom Inc released its first quarter earnings report after hours on Thursday, seeing a sharp drop on both top and bottom lines. The company didn’t offer any guidance for its next quarter but did emphasize that it had enough liquidity to get through the year. Yahoo Finance’s Myles Udland breaks down the retail companies earnings report.