Nordstrom, Inc. JWN is committed to its store expansion endeavors to enrich shoppers’ experience. The company is likely to introduce a Nordstrom Rack in Estero, FL, in fall of this year.
The Rack store will be situated in Coconut Point, a picturesque outdoor shopping center having more than 110 stores, comprising Dillard's, Barnes & Noble, an Apple Store, Tommy Bahama Store, Marlin Restaurant and PGA TOUR Superstore. This will offer an exciting shopping experience for the Estero residents and visitors.
Apart from the aforementioned location, the Rack stores will be opening in Coral Springs, Melbourne and Lakeland this fall. Such locations will strengthen JWN's physical presence and economic impact in Florida. The company presently operates six Nordstrom stores and 19 Nordstrom Rack stores in Florida, generating more than 2,800 jobs statewide. We expect the new location will attract customers, and hence bolster JWN’s sales and profits.
Nordstrom Rack, which is the company’s off-price division, targets value-conscious shoppers. This is an integral part of JWN’s Closer to You strategy, which looks to offer a great value and interconnected experience to customers. Its Rack banner has been doing well for a while. During third-quarter fiscal 2024, sales at the Nordstrom Rack banner advanced 10.6% year over year to $1.3 billion and comparable sales rose 3.9%.
The Rack banner's digital channel is a differentiator to the off-price retail, allowing customers to shop whenever and however they want. The Rack banner is on track to increase productivity through its network by reducing transportation costs and delivery times and enhancing services including faster delivery. The company has been introducing more premium brands at Rack, better assortment and increased brand awareness.
More on Nordstrom
Nordstrom remains quite focused on building momentum at Rack by increasing its strategic brand penetration, improving the Rack performance, increasing inventory productivity and progressing on its supply-chain optimization initiatives. The company’s Nordstrom Rack brand comprises NordstromRack.com, Nordstrom Rack U.S. stores and Last Chance clearance stores.
This Zacks Rank #3 (Hold) company has been making progress on its customer-based strategy. It is focused on driving Nordstrom banner growth and optimizing operations and strength at Rack. The company has been expediting deliveries, expanding online offerings and adding cheaper merchandise at its Rack off-price stores.
Increased focus on distribution facilities and improved connectivity of physical and digital capabilities are driving the company’s performance. JWN continues seeking additional efficiencies in flow and improved productivity through inventory management initiatives.
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The Seattle-based fashion retailer’s shares have gained 39.2% in the past year compared with the industry’s 40.3% growth.
Key Picks in Retail
We have highlighted three better-ranked stocks, namely Deckers DECK, Boot Barn BOOT and Urban Outfitters URBN.
Deckers, a footwear and accessories dealer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Deckers’ current financial-year sales indicates growth of 13.6% from the year-ago figure. DECK delivered an average earnings surprise of 41.1% in the trailing four quarters.
Boot Barn, a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories, currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 6.8%, on average.
The Zacks Consensus Estimate for Boot Barn’s current financial-year sales indicates growth of 13.4% from the year-ago figure.
Urban Outfitters, a fashion lifestyle specialty retailer, currently carries a Zacks Rank of 2. URBN delivered an average earnings surprise of 22.8% in the trailing four quarters.
The consensus estimate for Urban Outfitters’ current financial-year sales indicates growth of 6.6% from the year-ago figure.
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Deckers Outdoor Corporation (DECK) : Free Stock Analysis Report
Nordstrom, Inc. (JWN) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
