Now Reading
What are the Risks for Nordstrom in this Volatile Retail Environment

What are the Risks for Nordstrom in this Volatile Retail Environment

What Risks Does Nordstrom Face in this Volatile Retail Environment?

Nordstrom (JWN) is a fashion specialty retailer established in the United States. The company sells a wide variety of clothing, shoes and jewelry through a variety different channels.

Nordstrom recently announced its fourth-quarter results in 2021. Revenue grew by 23% year over year to $4.38billion, exceeding consensus projections at $4.36billion. The adjusted profits per share grew by 486% to $1.23 over the same period.

For Fiscal 2022, the company forecasts earnings in the range of $3.15 – $3.50 per share. Revenue growth is expected to be between 5% – 7% year-over.

Let’s look at the risk factors for Nordstrom using the new Tipranks’ Risk Factors tool.

Risk Factors

Nordstrom’s most significant risk categories are Finance & Corporate, and Ability to Sell. Each of these 6 risks represents 6 out of the total 24 identified risks.

In its most recent report, the organization added one new risk to the Production category. According to the company, any inability to reduce global labor and merchandise price pressures or disruptions could negatively impact our profitability.

Nordstrom informs investors that any increase of product or delivery cost, such as those caused due to changes in the price or transportation costs, could result in higher prices for customers. Nordstrom warns investors that higher labor costs will increase operating expenses, which in turn will reduce profitability. The company warns that if it does not pay competitive wages, it could lose its employees, leading to high staff turnover, and negative effects on business operations.

Nordstrom further warns that while the firm is focused on enhancing its internal network by diversifying carrier capacity and improving inventory visibility, supply chain disruptions might harm the company’s ability to meet customer demand, hurting future results and profitability.

Wall Streets Take

The stock currently has a Hold consensus rating, based on one Buy recommendation, 10 Hold recommendations, and 2 Sell recommendations.

Furthermore, the average JWN price target of $27.67 suggests a 5.97% upside potential compared to current levels.

Get the TipRanks mobile app now 

To find good ideas for stocks trading at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that unites all of TipRanks equity insights. 

Read full Disclaimer & Disclosure

Related News:
Lennar Posts Strong Quarterly Results, as the Housing Market Outperforms
FDA approves Investigational NDAs for Sonnets, SON-1010; Shares skyrocket
Stock Gains 9.7%; Jabil Posts Better Q2 Results Than Expected

View Comments (0)

Leave a Reply

Your email address will not be published.