Nordstrom Slides As It Rejects Family Offer To Buy Company – CWEB.com
Nordstrom (NYSE:JWN ) has slide lower after it rejected a family proposal from the Nordstrom family to acquire the company.
A group consisting of company Co-Presidents Blake Nordstrom, Peter Nordstrom, and Erik Nordstrom, along with President of Stores James Nordstrom, Chairman Emeritus Bruce Nordstrom, and Anne E. Gittinger said it intended to submit a proposal to buy all outstanding shares it doesn’t already own along with 21% of family-owned shares for $50 each, the company says.
Nordstrom remains the leading retailer in evolving to meet customers’ needs, which is seen in the company’s return policy, growing discount stores, and commitment in growing its online presence.
Nordstrom (NYSE:JWN) in 2017 had a record sales of approximately $15 billion.
This represented annualized growth of 5% over the last five years reflecting the investments they have made to expand our reach and improve the customer experience.
Nordstrom (NYSE:JWN) will continue to see positive customer trends. At the close of 2017, Nordstrom had 33 million customers.
Additionally, 9 million customers have shopped in multiple ways, a 6% increase over the previous year.
It recently announced 1.2% comp sales growth for November and December period, which isn’t spectacular, especially after accounting for higher e-commerce sales growth.
The current price does not justify the recent results.
Nordstrom (NYSE:JWN) has shot up by over 35% since early November. The company has benefitted from the positive sales environment in the holiday season.
Nordstrom competitors are:
Sears (NASDAQ:SHLD) which trades around $3
Overstock (NASDAQ:OSTK) which trades $60
Dillards (NYSE:DDS) which trades $88
Nordstrom (NYSE:JWN) which trades $52
Macys (NYSE:M) which trades $30
Groupon (NASDAQ:GRPN) which trades around $5
Walmart (NYSE:WMT) which trades around $88
Etsy (NASDAQ:ETSY) which trades around $25
Gap (NYSE:GPS) which trades around $34
BABA (NYSE:BABA) which trades around $180
Amazon ( NASDAQ:AMZN) which trades around $1500
CWEB Analyst’s have initiated a Buy Rating for Nordstrom (NYSE:JWN) and a Price Target of $100 within 12 months.
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