Nordstrom (JWN) AI Stock Analysis

• Market Cap: $4.12B
• Dividend Yield: 3.08%
• Average Volume (3M): 6.55M
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.69
• Revenue Growth: 2.20%
• EPS Growth: 120.00%
• Country: US
• Employees: 55,000
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Department Stores
• EPS (TTM): 1.10
• Shares Outstanding: 155,234,000
• 10 Day Avg. Volume: 12,320,365
• 30 Day Avg. Volume: 6,548,551
• PEG Ratio: 0.47
• Price to Book (P/B): 3.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $23.80
• Price Target Upside: -3.49% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 7

• Rating: 60 Neutral
• Price Target: $26.00 ▲(5.43%Upside)

Nordstrom's stock score reflects mixed financial performance with strong cash management but operational challenges. Technical indicators show bullish trends, albeit with a potential peak. Valuation is fair, and corporate events present both opportunities and risks.

Positive Factors

Financial Performance

Adjusted EPS increased to $1.10, up from $0.96 last year and well above consensus expectations, with solid expense control contributing to the improvement.

Sales and Margins

Gross margins expanded by 270 basis points over the prior-year quarter to 39.0%, benefiting from better markdown management and lower loyalty promotions.

Strategic Execution

Nordstrom's full-price banner outperformed with comps of +5.3% compared to the Rack's +3.5%, indicating strong performance in its strategic execution.

Negative Factors

Deal Uncertainty

There is concern that the Nordstrom deal could be at risk due to the ongoing tariff threat.

Inventory Management

Elevated inventory growth of +11.4% year over year versus net sales down by 2.1% could mean markdown-related gross margin headwinds.

Leadership Stability

The departure of CFO Cathy Smith could signify potential leadership instability, as she will take on a new role at Starbucks.

Nordstrom Business Overview & Revenue Model

Company Description

Nordstrom, Inc. (JWN) is a leading American luxury department store chain, headquartered in Seattle, Washington. The company operates in the retail sector, offering a wide range of products including clothing, shoes, cosmetics, and accessories for men, women, and children. Nordstrom serves its customers through a network of full-line stores, Nordstrom Rack outlets, and an online platform, providing both in-store and digital shopping experiences.

How the Company Makes Money

Nordstrom makes money primarily through the sale of merchandise across its various retail channels. The company's revenue streams include full-price sales from its Nordstrom stores and online platform, as well as off-price sales from its Nordstrom Rack outlets. Additionally, Nordstrom generates income from its credit card services, which offer customers benefits and discounts, thereby encouraging further purchases. Significant factors contributing to its earnings include its reputation for high-quality customer service, its strong brand partnerships with leading fashion labels, and its strategic investments in digital capabilities to enhance the omnichannel shopping experience.

Nordstrom Financial Statement Overview

Summary

Nordstrom's financials show operational challenges, with income statement volatility and declining profitability margins, particularly a significant drop in gross profit margin. However, balance sheet strengths include a high return on equity despite high leverage, and cash flows indicate improved financial management through strong free cash flow growth.

Income Statement

The income statement shows a volatile performance with a significant drop in gross profit margin from previous years. The most recent year reported a gross profit margin of 0.24% compared to 36.67% in the previous year. Net profit margin improved slightly to 1.96% from 0.91% but remains low. Revenue growth is modest at 2.2% year-over-year. The EBIT margin turned negative in the latest year, indicating operational challenges. The EBITDA margin is unavailable due to a zero EBITDA figure.

Balance Sheet

The balance sheet reflects a moderate financial position with a debt-to-equity ratio of 1.46, indicating a high leverage position compared to industry norms. The return on equity is 25.79%, demonstrating efficient use of equity. The equity ratio is low at 12.72%, suggesting potential risk if liabilities increase. The company's ability to manage debt effectively will be crucial going forward.

Cash Flow

Cash flow analysis shows strong operating cash flow to net income ratio of 4.31, indicating effective cash generation relative to net income. Free cash flow improved significantly with a growth rate of 1344.23%, reflecting better capital management. The free cash flow to net income ratio is 2.55, showing robust cash flow relative to earnings. Despite improvements, maintaining this trajectory will be key.

Breakdown
Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
15.02B	14.69B	15.53B	14.79B	10.71B
	Gross Profit
5.62B	5.39B	5.51B	5.45B	3.12B
	EBIT
0.00	535.00M	465.00M	492.00M	-1.05B
	EBITDA
1.32B	1.05B	1.26B	1.28B	-205.00M
	Net Income Common Stockholders
294.00M	134.00M	245.00M	178.00M	-690.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.03B	628.00M	687.00M	322.00M	681.00M
	Total Assets
8.97B	8.44B	8.74B	8.87B	9.54B
	Total Debt
1.67B	4.48B	4.64B	4.65B	5.22B
	Net Debt
630.00M	3.85B	3.95B	4.33B	4.54B
	Total Liabilities
7.83B	7.60B	8.01B	8.29B	9.23B
	Stockholders Equity
1.14B	848.00M	739.00M	581.00M	305.00M
Cash Flow		Free Cash Flow
751.00M	52.00M	473.00M	199.00M	-733.00M
	Operating Cash Flow
1.27B	621.00M	946.00M	705.00M	-348.00M
	Investing Cash Flow
-488.00M	-571.00M	-393.00M	-521.00M	-347.00M
	Financing Cash Flow
-372.00M	-109.00M	-186.00M	-544.00M	530.00M

Nordstrom Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 24.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JWN, the sentiment is Positive. The current price of 24.66 is above the 20-day moving average (MA) of 24.41, above the 50-day MA of 24.21, and above the 200-day MA of 23.26, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 66.77 is Neutral, neither overbought nor oversold. The STOCH value of 91.67 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JWN.

Nordstrom Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URBN	81 Outperform	$6.21B	14.49	19.55%	―	8.38%	52.18%
DDS	78 Outperform	$6.29B	11.05	30.93%	0.25%	-3.94%	-17.78%
M	73 Outperform	$3.23B	5.68	12.92%	6.13%	-3.77%	4607.98%
COLM	63 Neutral	$3.41B	15.23	12.34%	1.92%	-1.69%	-4.01%
Sector *	62 Neutral	$6.90B	11.05	2.80%	4.27%	2.67%	-24.92%
JWN	60 Neutral	$4.12B	14.17	29.58%	3.08%	2.20%	120.00%
KSS	59 Neutral	$977.00M	7.52	3.19%	5.73%	-7.03%	-56.59%

Nordstrom Corporate Events

Nordstrom Completes Acquisition and Delists from NYSE

On May 20, 2025, Nordstrom, Inc. completed an all-cash acquisition by the Nordstrom family and El Puerto de Liverpool, S.A.B. de C.V., with shareholders receiving $24.25 per share. This acquisition marks a significant milestone in Nordstrom’s history, leading to the delisting of its common stock from the NYSE and a leadership transition with Erik and Pete Nordstrom as Co-CEOs. The merger aims to enhance Nordstrom’s service and product offerings while maintaining its commitment to customer satisfaction.

The most recent analyst rating on (JWN) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Nordstrom stock, see the JWN Stock Forecast page.

Nordstrom Shareholders Approve Merger with Holdings

On May 16, 2025, Nordstrom, Inc. held a virtual special meeting where shareholders approved a merger agreement with Nordstrom Holdings, Inc. The merger required a two-thirds majority vote and a majority of minority approval, both of which were achieved. Additionally, shareholders approved a non-binding proposal regarding executive compensation related to the merger. The adjournment proposal was rendered unnecessary due to the approval of the merger proposal.

The most recent analyst rating on (JWN) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Nordstrom stock, see the JWN Stock Forecast page.

Nordstrom Shareholders Approve Merger with Norse Holdings

On May 16, 2025, Nordstrom‘s shareholders approved a Merger Agreement with Norse Holdings, Inc., which will result in Nordstrom becoming a wholly owned subsidiary. The merger is expected to be completed by May 20, 2025, contingent on certain conditions. As part of the agreement, Nordstrom announced a special cash dividend and a stub period dividend for its shareholders, dependent on the merger’s closing. The dividends’ payment is scheduled for May 27, 2025, provided the merger closes as anticipated.

The most recent analyst rating on (JWN) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Nordstrom stock, see the JWN Stock Forecast page.

Nordstrom Faces Legal Challenges Amid Merger Agreement

Nordstrom has entered into a merger agreement with Norse Holdings, Inc., which will result in Nordstrom becoming a wholly-owned subsidiary. The merger has led to legal challenges, including class action complaints filed by shareholders alleging breaches of fiduciary duties and violations of the Washington Moratorium Statute. These legal proceedings could impact the merger’s completion and have implications for stakeholders, as they seek to delay the shareholder vote and prevent the merger from closing without sufficient approval.

The most recent analyst rating on (JWN) stock is a Hold with a $25.00 price target. To see the full list of analyst forecasts on Nordstrom stock, see the JWN Stock Forecast page.

Nordstrom Announces Merger Agreement with Norse Holdings

Nordstrom, Inc. announced a merger agreement with Norse Holdings, Inc., where it will become a wholly-owned subsidiary. As part of the merger, special and stub period dividends may be declared, contingent on the merger’s closing, with a record date set for May 19, 2025. The merger’s completion is subject to shareholder approval and other conditions, with uncertainties around the declaration and payment of dividends.

Nordstrom Faces Legal Challenges in Merger Process

On December 22, 2024, Nordstrom entered into a Merger Agreement with Norse Holdings and Navy Acquisition Co., planning to become a wholly-owned subsidiary of Norse Holdings. The merger has faced legal challenges, including a class action lawsuit filed by a Nordstrom shareholder on March 31, 2025, alleging breaches of fiduciary duties and seeking to delay the merger. Despite these challenges, Nordstrom is committed to proceeding with the merger and has made supplemental disclosures to address shareholder concerns, aiming to minimize litigation risks and ensure the transaction’s completion.

Nordstrom Reports Strong Q4 2024 Earnings and CFO Departure

On March 4, 2025, Nordstrom, Inc. announced its fourth quarter 2024 earnings, reporting net earnings of $165 million and an EBIT of $242 million. The company saw a 4.7% increase in comparable sales, with strong performance in women’s and men’s apparel. Despite a 2.1% decrease in net sales compared to the previous year’s 14-week period, excluding the 53rd week, sales increased by 2.5%. The company also announced the departure of CFO Cathy Smith and initiated a search for her replacement. Nordstrom’s financial results were bolstered by strategic agility during the holiday season, leading to strong profitability and a positive outlook for stakeholders.