Nordstrom Revisits Salt Lake City - Analyst Blog
23 March 2012 - 7:15PM
Zacks
Recently, Nordstrom
Inc. (JWN), a leading fashion specialty retailer in the
United States, announced the opening of a new store in Salt Lake
City, Utah. The company through its latest store will offer
high quality apparel, shoes, cosmetics and accessories for men,
women and kids.
The new 125,000 square foot
showroom will offer both branded and private label merchandises.
Residents of the region will have the benefit of buying designer
apparel from renowned brands like Dries Van Noten, Burberry
Prorsum, Michael Kors and Jason Wu. Further, the store will feature
classic beauty brands designed by Giorgio Armani, Bobbi Brown, Kate
Somerville and more.
The new store marks the company’s
return to the region after 15 years. The company opened its first
store in the region in 1980, while closing the same in the year
2007.
Earlier, the company announced a
new $800 million share repurchase authorization while hiking its
quarterly dividend. The company plans to fund the newly announced
share buybacks by using the available cash in hand. Nordstrom also
increased its quarterly dividend to 27 cents per share, bringing
the company’s annualized dividend payout to $1.08 per share.
Nordstrom operates in a highly
fragmented specialty retail sector and faces intense competition
from other well-established players, such as The Gap
Inc. (GPS) and Limited Brands Inc. (LTD).
The company primarily competes on the basis of fashion, quality and
service.
Nordstrom remains focused on
expanding its store network to drive top-line growth. However, a
sluggish discretionary spending environment, intense competition
and exposure to seasonal fluctuations will keep us on the
sidelines.
Nordstrom's shares maintain a Zacks
#3 Rank, which translates into a short-term ‘Hold’ rating. Our
long-term recommendation on the stock remains ‘Neutral’.
GAP INC (GPS): Free Stock Analysis Report
NORDSTROM INC (JWN): Free Stock Analysis Report
LIMITED BRANDS (LTD): Free Stock Analysis Report
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