Nordstrom Inc

JWN: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$74.80	Llln	Qkxbgxdqx

Nordstrom Earnings: Improving Results Boost Confidence in Strategy; Shares Attractive

David Swartz

Aug 28, 2024

We do not expect to make any material change to our $38.50 per share fair value estimate after no-moat Nordstrom’s profitability eclipsed expectations. Aided by strong full-price sell-through, its 36.6% gross margin on net sales was its highest for a second quarter in many years and beat our forecast by 110 basis points. Although in the early stages, this result provides confidence that the firm’s efficiency, merchandising, inventory management, and store opening plans are working. Nordstrom’s shares rallied 7% in Aug. 27 postmarket trading but remain undervalued.

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