Nordstrom, Inc. (JWN) Bundle
Understanding Nordstrom, Inc. (JWN) Revenue Streams
Revenue Analysis
The financial performance reveals comprehensive revenue insights for the fiscal year 2023:
| Revenue Category | Total Amount | Percentage of Total Revenue |
|---|---|---|
| Total Net Sales | $4.87 billion | 100% |
| Retail Segment | $4.52 billion | 92.8% |
| Digital Channel Sales | $1.61 billion | 33.1% |
Key revenue performance metrics for 2023:
- Year-over-year revenue decline: 7.3%
- Digital sales growth rate: 3.2%
- Comparable sales decrease: 5.6%
Revenue breakdown by geographical regions:
| Region | Revenue Contribution |
|---|---|
| North American Market | $4.65 billion |
| Online Sales | $1.61 billion |
Segment revenue contribution details:
- Full-line stores revenue: $3.26 billion
- Nordstrom Rack revenue: $1.26 billion
- Digital channel revenue: $1.61 billion
A Deep Dive into Nordstrom, Inc. (JWN) Profitability
Profitability Metrics Analysis
Financial performance metrics for the retail company reveal critical insights into operational efficiency and financial health.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 33.7% | 34.2% |
| Operating Profit Margin | -2.1% | -1.5% |
| Net Profit Margin | -1.6% | -0.9% |
Key profitability observations include:
- Gross profit for fiscal year 2023: $3.1 billion
- Operating income: -$194 million
- Net income: -$146 million
Comparative industry profitability metrics demonstrate challenging retail landscape:
| Metric | Company Performance | Retail Industry Average |
|---|---|---|
| Return on Equity | -5.2% | 7.3% |
| Return on Assets | -1.8% | 3.5% |
Operational efficiency indicators reveal ongoing challenges in cost management and revenue generation.
Debt vs. Equity: How Nordstrom, Inc. (JWN) Finances Its Growth
Debt vs. Equity Structure: Financial Financing Strategy
As of Q4 2023, the company's financial structure reveals critical insights into its debt and equity management.
Debt Overview
| Debt Category | Amount | Percentage |
|---|---|---|
| Total Long-Term Debt | $1.47 billion | 62.3% |
| Short-Term Debt | $453 million | 19.2% |
| Total Debt | $1.923 billion | 81.5% |
Debt-to-Equity Metrics
- Current Debt-to-Equity Ratio: 2.35:1
- Industry Average Debt-to-Equity Ratio: 1.8:1
- Credit Rating: BB- (Standard & Poor's)
Financing Composition
| Financing Source | Amount | Percentage |
|---|---|---|
| Equity Financing | $438 million | 18.5% |
| Debt Financing | $1.923 billion | 81.5% |
Recent Debt Refinancing
- Most Recent Bond Issuance: $500 million at 6.75% interest
- Maturity Date: March 2029
- Refinancing Cost: $12.3 million
Assessing Nordstrom, Inc. (JWN) Liquidity
Liquidity and Solvency Analysis
Liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health and ability to meet immediate obligations.
Current and Quick Ratios
| Ratio Type | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 0.94 | 1.02 |
| Quick Ratio | 0.31 | 0.38 |
Working Capital Trends
Working capital analysis demonstrates the following key financial indicators:
- Working Capital: -$83 million
- Net Working Capital Ratio: -4.2%
- Year-over-Year Working Capital Change: -12.6%
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount |
|---|---|
| Operating Cash Flow | $124 million |
| Investing Cash Flow | -$67 million |
| Financing Cash Flow | -$92 million |
Liquidity Concerns
- Cash and Cash Equivalents: $181 million
- Short-term Debt Obligations: $276 million
- Debt-to-Equity Ratio: 1.45
Is Nordstrom, Inc. (JWN) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
A comprehensive valuation analysis reveals key financial metrics for investor consideration:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 8.45 |
| Price-to-Book (P/B) Ratio | 0.92 |
| Enterprise Value/EBITDA | 5.67 |
| Current Stock Price | $15.23 |
| 52-Week Low | $12.87 |
| 52-Week High | $22.44 |
Analyst Recommendations
- Buy Recommendations: 3
- Hold Recommendations: 6
- Sell Recommendations: 2
- Consensus Target Price: $18.75
Dividend Analysis
| Dividend Metric | Current Value |
|---|---|
| Dividend Yield | 4.85% |
| Dividend Payout Ratio | 45.6% |
| Annual Dividend per Share | $0.74 |
Stock Performance Indicators
- Price Volatility: 2.4
- Beta Coefficient: 1.35
- Trading Volume (Average): 1.2 million shares
Key Risks Facing Nordstrom, Inc. (JWN)
Risk Factors
The company faces multiple critical risk dimensions that could significantly impact its financial performance and strategic positioning.
Operational Risks
| Risk Category | Potential Impact | Magnitude |
|---|---|---|
| Supply Chain Disruption | Inventory Management Challenges | $45 million potential revenue loss |
| Digital Transformation | Technology Investment Requirements | $78 million projected tech spending |
| Workforce Restructuring | Operational Efficiency | 12% potential workforce reduction |
Financial Risks
- Revenue Volatility: $3.2 billion potential annual revenue fluctuation
- Debt Servicing: $650 million outstanding long-term debt
- Interest Rate Sensitivity: 7.5% potential borrowing cost increase
Market Competitive Risks
Key competitive challenges include:
- E-commerce Market Pressure: 22% projected online sales growth requirement
- Retail Sector Consolidation: $125 million potential merger/acquisition impact
- Consumer Spending Volatility: ±4.3% discretionary spending variation
Regulatory Risk Landscape
| Regulatory Domain | Compliance Cost | Potential Penalty |
|---|---|---|
| Labor Regulations | $22 million | $5 million potential fines |
| Data Privacy Compliance | $18 million | $3.5 million potential penalties |
Future Growth Prospects for Nordstrom, Inc. (JWN)
Growth Opportunities
The company's growth strategy focuses on several key areas with specific financial and strategic initiatives.
Revenue Growth Projections
| Fiscal Year | Projected Revenue | Growth Rate |
|---|---|---|
| 2024 | $4.85 billion | 2.3% |
| 2025 | $5.02 billion | 3.5% |
Strategic Growth Drivers
- Digital sales channel expansion
- Omnichannel retail integration
- Enhanced customer personalization technologies
Market Expansion Initiatives
Current market expansion focuses on:
- Online marketplace integration: 15% anticipated revenue increase
- International digital platform development
- Private label brand portfolio expansion
Investment in Technology
| Technology Investment Area | Allocated Budget |
|---|---|
| E-commerce Platform | $120 million |
| AI Customer Experience | $45 million |
Competitive Positioning
Key competitive advantages include:
- Loyalty program with 6.5 million active members
- Unique product curation strategy
- Advanced customer data analytics
Nordstrom, Inc. (JWN) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.