Macys vs Nordstroms Essay

2858 WordsMar 9, 201212 Pages
Financial Statement Analysis: Macy’s Inc. vs. Nordstrom, Inc. MACY’S, INC. a. Macy’s, Inc. is a retail organization operating retail stores and Internet websites under two brands (Macy’s and Bloomingdale’s) that sell a wide range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods. Macy's’ competitors include other middle priced-ranged department stores including Nordstrom, Bed Bath & Beyond, Belk, Bon Ton, Burlington Coat Factory, Dillard’s, Gap, J.C. Penney, Kohl’s, Limited, Lord & Taylor, Neiman Marcus, Nordstrom, Saks, Sears, Target, TJ Maxx and Wal-Mart. p. 4, 10-K b. Macy’s fiscal year ends on the Saturday that is closest to January 31st of…show more content…
Fiscal years 2010, 2009 and 2008 ended on January 29, 2011, January 30, 2010 and January 31, 2009, respectively. c. Depreciation is computed using the straight-line method over the asset’s estimated useful life, which is determined by asset category as follows: Buildings and improvements (5 – 40 years); Store fixtures and equipment (3 – 15years), Leasehold improvements (Shorter of initial lease term or asset life); Capitalized software (3 – 7 years). d. Nordstrom’s merchandise inventories are stated at the lower of cost or market value using the retail inventory method. p. 34 e. The largest source of cash from financing activities is from Proceeds from Long-Term Borrowing at $498 million. p. 42 f. The largest use of cash from investing activities is for Capital Expenditures at $399 million. p. 42 g. The stock price at the end of the 2010 fiscal year was $40.91(Jan 28, 2011) compared to $34.54 at the beginning of the 2010 fiscal year (Jan 29, 2010). Company stock was at a low point at the beginning of the 2010 fiscal year. It reached a peak value of around $46 in April. The stock reached a low point around $28 in September. It climbed up to $42-$43 by early November. It was quite stable from November to end of fiscal year. The stock price for Nordstrom, Inc (JWN) was 50.67 on 10/10/11. [pic] Figure 2. Nordstrom Stock for Fiscal Year 2010 The stock price went from $34 at the beginning of the 2010 fiscal year to $46 dollars in April largely

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