We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nordstrom (JWN) Sets Priorities for 2024: Will It Aid Growth?
Read MoreHide Full Article
Nordstrom Inc. (JWN - Free Report) success story hinges on the advancements made in fiscal 2023 toward enhancing customer experience and bolstering financial performance. In fiscal 2023, Nordstrom remained focused on improving its merchandise assortment by effectively managing its inventory levels, and making strategic investments in products and brands that align with customer preferences.
The company achieved robust results in fiscal 2023 mainly backed by its focus on three priorities, including improving Nordstrom Rack performance, bolstering inventory productivity and optimizing supply-chain capabilities. These traits have aided JWN’s financial performance and enhanced customer experience.
Key Highlights
As part of improving Nordstrom Rack performance, JWN opened 19 new Rack stores in fiscal 2023. This expansion enhanced the brand's presence and served as a profitable investment, delivering returns that exceeded the cost of capital. As a result, Nordstrom Rack reported comparable store sales growth of high-single digits in fourth-quarter fiscal 2023.
Apart from this, Rack banner witnessed strength in its digital business, particularly NordstromRack.com, through improvement in traffic and conversion rates. This also aided the site’s profitability in fiscal 2023.
On the inventory front, it made progress on improving inventory productivity as evident from the positive sales-to-inventory spread in the fiscal fourth quarter. This resulted in a favorable inventory position as of the end of fiscal 2023.
Nordstrom has been making efforts to enhance customer experience through faster delivery, under its supply-chain optimization work that began in early 2022. As a result, the company has been showcasing commendable improvement in variable supply-chain expense savings for the past few quarters. It delivered more than 50 basis points of improvement in variable supply-chain expense savings for the sixth straight time in the fiscal fourth quarter.
The Plan Ahead
Backed by the progress in fiscal 2023, JWN is optimistic about its targets for fiscal 2024. Looking into fiscal 2024, management has refreshed its three key priorities for 2024, which include driving growth at Nordstrom banner, optimizing operations and building on momentum at Rack banner.
With respect to Nordstrom banner, the company expects to enhance customer value by offering a compelling product mix, which will include their favorite as well as newer brands. It also plans to enhance Nordstrom banner’s digital footprint, with the launch of the brand’s digital markets on Nordstrom.com in April.
The next strategic move is to focus on operational optimization, especially considering the success achieved in optimizing supply-chain capabilities. This move involves swift fulfillment and delivery to customers, while also maximizing its inventory value.
Finally, Nordstrom expects to continue progress on improving the performance of its Rack banner. Expansion of Rack stores is one of the primary ways to increase customers and drive growth for Rack banner. Expansion of stores also facilitates better access to its omnichannel services for customers. Offering services such as cross-banner in-store returns, Buy Online, Pick Up In-Store and alterations across various banners are expected to bolster customers’ shopping experience.
Final Thoughts
Nordstrom’s strategic endeavors position it firmly for growth. Backed by aforementioned initiatives, management is confident about the strength of its brands, its ability to drive profitable growth and deliver long-term value to shareholders.
The Zacks Rank #3 (Hold) stock has risen 31.7% in the past six months compared with the industry’s growth of 30.8%.
Image Source: Zacks Investment Research
3 Picks You Can’t Miss
We have highlighted three better-ranked stocks in the broader sector, namely American Eagle Outfitters (AEO - Free Report) , Abercrombie & Fitch Co (ANF - Free Report) and Deckers Outdoor (DECK - Free Report) .
American Eagle operates as a multi-brand specialty retailer. It currently flaunts a Zacks Rank #1 (Strong Buy). AEO has a trailing four-quarter earnings surprise of 22.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Eagle’s current financial-year sales and earnings suggests growth of 3.3% and 12.5%, respectively, from the year-ago reported figures.
Abercrombie, a specialty retailer of premium, high-quality casual apparel for men, women, and kids, sports a Zacks Rank #1. ANF delivered an earnings surprise of 715.6%, on average
The Zacks Consensus Estimate for Abercrombie’s current financial-year sales and earnings suggests growth of 5.6% and 19.1%, respectively, from the year-ago reported numbers.
Deckers, a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities, currently carries a Zacks Rank #2 (Buy). DECK has a trailing four-quarter earnings surprise of 32.1%, on average
The Zacks Consensus Estimate for Deckers’ current fiscal-year sales and earnings suggests growth of 15.8% and 38.7%, respectively, from the year-ago reported numbers.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Nordstrom (JWN) Sets Priorities for 2024: Will It Aid Growth?
Nordstrom Inc. (JWN - Free Report) success story hinges on the advancements made in fiscal 2023 toward enhancing customer experience and bolstering financial performance. In fiscal 2023, Nordstrom remained focused on improving its merchandise assortment by effectively managing its inventory levels, and making strategic investments in products and brands that align with customer preferences.
The company achieved robust results in fiscal 2023 mainly backed by its focus on three priorities, including improving Nordstrom Rack performance, bolstering inventory productivity and optimizing supply-chain capabilities. These traits have aided JWN’s financial performance and enhanced customer experience.
Key Highlights
As part of improving Nordstrom Rack performance, JWN opened 19 new Rack stores in fiscal 2023. This expansion enhanced the brand's presence and served as a profitable investment, delivering returns that exceeded the cost of capital. As a result, Nordstrom Rack reported comparable store sales growth of high-single digits in fourth-quarter fiscal 2023.
Apart from this, Rack banner witnessed strength in its digital business, particularly NordstromRack.com, through improvement in traffic and conversion rates. This also aided the site’s profitability in fiscal 2023.
On the inventory front, it made progress on improving inventory productivity as evident from the positive sales-to-inventory spread in the fiscal fourth quarter. This resulted in a favorable inventory position as of the end of fiscal 2023.
Nordstrom has been making efforts to enhance customer experience through faster delivery, under its supply-chain optimization work that began in early 2022. As a result, the company has been showcasing commendable improvement in variable supply-chain expense savings for the past few quarters. It delivered more than 50 basis points of improvement in variable supply-chain expense savings for the sixth straight time in the fiscal fourth quarter.
The Plan Ahead
Backed by the progress in fiscal 2023, JWN is optimistic about its targets for fiscal 2024. Looking into fiscal 2024, management has refreshed its three key priorities for 2024, which include driving growth at Nordstrom banner, optimizing operations and building on momentum at Rack banner.
With respect to Nordstrom banner, the company expects to enhance customer value by offering a compelling product mix, which will include their favorite as well as newer brands. It also plans to enhance Nordstrom banner’s digital footprint, with the launch of the brand’s digital markets on Nordstrom.com in April.
The next strategic move is to focus on operational optimization, especially considering the success achieved in optimizing supply-chain capabilities. This move involves swift fulfillment and delivery to customers, while also maximizing its inventory value.
Finally, Nordstrom expects to continue progress on improving the performance of its Rack banner. Expansion of Rack stores is one of the primary ways to increase customers and drive growth for Rack banner. Expansion of stores also facilitates better access to its omnichannel services for customers. Offering services such as cross-banner in-store returns, Buy Online, Pick Up In-Store and alterations across various banners are expected to bolster customers’ shopping experience.
Final Thoughts
Nordstrom’s strategic endeavors position it firmly for growth. Backed by aforementioned initiatives, management is confident about the strength of its brands, its ability to drive profitable growth and deliver long-term value to shareholders.
The Zacks Rank #3 (Hold) stock has risen 31.7% in the past six months compared with the industry’s growth of 30.8%.
Image Source: Zacks Investment Research
3 Picks You Can’t Miss
We have highlighted three better-ranked stocks in the broader sector, namely American Eagle Outfitters (AEO - Free Report) , Abercrombie & Fitch Co (ANF - Free Report) and Deckers Outdoor (DECK - Free Report) .
American Eagle operates as a multi-brand specialty retailer. It currently flaunts a Zacks Rank #1 (Strong Buy). AEO has a trailing four-quarter earnings surprise of 22.7%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Eagle’s current financial-year sales and earnings suggests growth of 3.3% and 12.5%, respectively, from the year-ago reported figures.
Abercrombie, a specialty retailer of premium, high-quality casual apparel for men, women, and kids, sports a Zacks Rank #1. ANF delivered an earnings surprise of 715.6%, on average
The Zacks Consensus Estimate for Abercrombie’s current financial-year sales and earnings suggests growth of 5.6% and 19.1%, respectively, from the year-ago reported numbers.
Deckers, a leading designer, producer and brand manager of innovative, niche footwear and accessories developed for outdoor sports and other lifestyle-related activities, currently carries a Zacks Rank #2 (Buy). DECK has a trailing four-quarter earnings surprise of 32.1%, on average
The Zacks Consensus Estimate for Deckers’ current fiscal-year sales and earnings suggests growth of 15.8% and 38.7%, respectively, from the year-ago reported numbers.