Nordstrom Financial Analysis Essay

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Financial Analysis Report Rehma Mohamed Market Profile Payout ratio (%) 35 Dividend ($) 1.32 Dividend yield (%) 1.68 Earnings per share (ttm) 3.72 Price/earnings (ttm) 21.04 Price/sales (ttm) 1.11 Price/book (mrq) 6.12 Financial Highlights Profit margin (ttm) 5.33% Return on assets (ttm) 9.15% Return on equity (ttm) 31.86% Revenue (ttm) 13.51B Gross profit (ttm) 5.10B Operating cash flow 1.22B Trading Information Beta 1.27 Market capitalization ($) 14.90B 52-Week change 27.67% 50-Day moving average 79.77 200-Day moving average 76.79 Shares outstanding 190.41M Institutional holdings (%) 57.70% Insider holdings (%) 26.23% Short interest (% of float) 2.40% Source: Yahoo! Finance Nordstrom, …show more content…

is on the rise. The retail store has proven to do very well. This can be in part due to the different demographics that Nordstrom, Inc. appeals to. For example, Nordstrom itself attracts individuals of higher salaries whereas Nordstrom Rack, a clearance store, attracts individuals of middle income. There will always be demand in the services sector and apparel stores …show more content…

The company also operates restaurants, coffee bars, and spas that appeal to customers. Geographic Structure Nordstrom has a total of 303 stores in the United States and two in Canada. The state with the largest market is California, having a total of 73 Nordstrom and Nordstrom Rack stores. Other states that are major markets for the company include Florida, Texas, and Washington. Nordstrom, Inc. started as a luxury chain, attracting older customers that were members of the upper class. Recently, however, the company has made drastic changes to appeal to younger, cost-conscious shoppers. To do so, they purchased an online store called HauteLook in 2011, a member-only website that offers sales with top brands in fashion. In 2012, Nordstrom announced that they would begin selling clothes from a British brand called Topshop, which attracts the younger demographic. Nordstrom Rack, an off-price outlet, appeals to the price-savvy customer. The consistent increase in revenue year after year, as seen in figure 1, is evidence that there has been some customer growth within the

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