Nordstrom Inc. Analysis
Executive summary
Nordstrom, Inc. is an American upscale fashion retailer, founded by John W. Nordstrom and Carl F. Wallin and headquartered in Seattle. In this paper, we analysis and evaluate the current and prospective profitability, margin ratios, liquidity and solvency. Methods of analysis include trend, horizontal and vertical analyses, and ratios calculating such as gross margin, current and quick ratios. Other calculations include rates of return on shareholder equity, return on Asset, total assets, total equity, and so on. All calculations can be found in the appendices. Results of data are analyzed to show that most of ratios are decrease in past three years, and share price is also low. However, their sale is stable, net income has increased and commercial activity is frequent.
We decided to invest this company. Although the report finds the trend of the company in its current position are not positive, they have the plan to expand company and open many branches. Also the company will issue more stocks and we summarize the company has huge development potential.
The report also investigates the fact that the analysis conducted has limitations. Some of the limitations include:
§ Forecasting figures are not provided nature;
§ Not enough information or enough detail is provided.
Analysis review
Nordstrom is a famous fashion chain store in the US, and the products include clothing, jewelry, bags, perfume, cosmetics, and household items. Nordstrom started its business from a shoe store in Seattle, and now developed into an international fashion retail company. The expansion of it was full of legendary. Let me introduce the history of this century-old brand.
Opened the shoe store: In 1901, John W. Nordstrom and his friend Carl Wallin opened Wallin & Nordstrom, a small downtown shoe store and the humble beginning of what was to become Nordstrom, Inc.
A growing reputation: By 1960, the downtown Seattle shoe shop had become the largest shoe store in the country, and the company, now with eight locations in Washington and Oregon, was the largest independent shoe chain in the United States.
In 1968, the three Nordstrom brothers handed the company over to the third generation: Everetts son Bruce, Elmers sons James and John, Lloyds son-in-law Jack, and family friend Bob Bender. It was controlled by Nordstrom family for nearly 67years.
A national expansion by set up physical stores: Nordstrom was not only satisfied by selling shoes, it started to expansion in other fashion field. Going public in 1971, the company was formally named Nordstrom, Inc. Two years later, annual sales surpassed $100 million and the company was recognized as the largest-volume fashion specialty store on the West