Nordstrom Financial Statement Analysis

In order to increase liquidity it needs to increase its cash by converting assets into cash (sales). Additionally, as a quick sell retail company, JBH does not give large credit sales to its customers, instead most of sales are made by cash or cash equivalent. This gives the company less account receivables and bad debts. As such a lower quick ratio than industry average is common and should not raise any liquidity issues.

First of which, is the current ratio. It has been rapidly declining since 2000. To me this indicates that there is a liquidity issue. Each year their trade debt increase exceeds the increase of net income for the company. As a result, the working capital has taken a nosedive from $58,650 in 2002 to only $5,466 in 2003.

Unlike more mainstream oriented department stores such as JCPenney or Macy's the target demographic for Nordstrom is more upscale. Nordstrom markets products that are indented for those with more disposable income. Because of this, they may not sell the same volume of products as JCPenney or Macy's. However, what they do sell is likely priced significantly higher than the more mainstream competition. The major draw of Nordstrom is the quantity and status of the designer brand names that they offer. Some of these brands include Gucci, BOSS, Calvin Klein, as well many more designer labels. In other words, brand names that not would likely be found at the likes of more mainstream department stores. Furthermore, these brands could be considered

Nordstrom’s is classified as one of the biggest U.S. department stores. Along with Sears, Macy’s, and JC Penny’s, Nordstrom manages each department in their stores as an individual buying center. Every group functions separately from one another, and is administered by a buyer who is in charge of all varieties and styles of merchandise sold. Promotions that can be used in the stores are included, as well. “The company has also benefited from a new computerized inventory system that gives buyers and salespeople the necessary data to make smarter decisions about what is needed in the stores—and what isn’t.” (Lamb, Hair, McDaniel 569). This new and improved system allows the department store to market a greater amount of full priced items, which ultimately increase sales. The buyer is also able to easily determine what items to obtain and exhibit in the store by using this system.

Nordstrom, Inc. was founded in 1901 by John W. Nordstrom. Today, the company is known as a fashion specialty retailer, offering apparel for women, men and children. They offer other products such as shoes, gifts, cosmetics, handbags, jewelry, accessories, and fragrances (Company Profile Nordstrom, Inc., 2016). At the time when the store was opened, in 1901 in Seattle, it was just a shoe store. To this day, the company’s headquarters are in Seattle, Washington, and has expanded operations in 39 states and Canada, with a total of 323 stores, of which there are 121 full-line stores in the U.S. and Canada (Nordstrom Company History). The company employs about 67,000 people. For the financial year ending January 2015, they recorded

I enjoyed reading your article on Nordstrom since I enjoy retail shopping. It was confirmed by Sabrina Bovell of the Sourcing Journal that Nordstrom still ranks number one for the most favorite premium fashion retailer among consumers in the United States for six years in a row. The author noted that Nordstrom earned top scores in store atmosphere, merchandise selection, size options and checkout speeds. In terms of customer support, however, a Nordstrom retailer in Seattle received high marks for sales support. Even though customers state that customer service is important, “only 43 percent of customers reported getting help from a sales assistant while they were shopping, and only 38 percent received suggestions for items they might like

In 1901, Nordtrom, Inc, was founded by John W. Nordstrom and Carl F. Wallin who are Swedish immigrants. As the very beginning, it was a very small shoe store in Seattle, washington, howeve it has grown into a fashion specialty chain with global reach (Nordstrom, 2015). As of July 2015, the company operates 209 stores throughout 38 states in the United State and Canada. According to the company reports, the total net income of Nordtrom has been increasing in the past few years. According to Loeb, the net sales and total assets of Nordstrom improved at 8.5 and 4.8%. in addition, the net sales of the company reached $13,110 million and the net earning was $720 million in 2014 (2014). In order to make shopping become more convenient, the company provides its’ customers high-end clothing, shoes, accessories for women, men and kids. As of July 2015, Nordstrom has total 118 full-line stores, 183 Nordstrom Racks stores, two Jeffrey boutiques and one clearance store. In addition, the company also provides its customers through online at Nordstrom.com, Nordstromrack.com and Hautelook.com, a private sale site. Therefore it also helps the company make more sales from remote customers. Moreover, the company has expanded their business into a credit segment. By having its own cards, the company can increase its revenue by financial changes. According to Hoovers, Nordstrom provides its customers Nordstrom Visa cards including credit cards, debit cards

I would classify Nordstrom’s as a specialty store due to the fact that their service levels are high, assortment is narrow, price would be moderate to high, and the gross margin is high. Also, a statement from the case study from Industry observer Lior Arussy calls Nordstrom’s business strategy “greed through love.” Nordstrom’s shares the same characteristics as Neiman Marcus, Bloomingdale’s, Macy’s, Saks Fifth Avenue and Lord and Taylor’s. While it is pricier to shop for clothes and home décor at these

As customer of Nordstrom and Nordstrom rack I could agree with the article’s key points. Customer services being one of the most important aspects and center piece of the business. Nordstrom employs the Focused strategy of business advantage, catering to ritzy culture and clientele of US. The local store is located in the International Mall which is known for the verity of high end stores in the area. In addition, it is imperative to mention the importance of the online database that Nordstrom employs nationwide to offer a better value for the customer. As an example, recently some relatives visited from Europe and visiting the Nordstrom store they discovered that the newest fashion products in demand and in scarce supply

Nordstrom: the store that has nearly everything and anything that one could want in a department store.

Nordstrom is a corporation that specializes in retail sales. As we break down the corporate and retail level of business operations we will reveal the total dynamics involved which helped establish this fortune five-hundred company. The information provided will display how the organizational structure of this company is separated into a centralized corporate base as well as a decentralized retail base platform. Additional information provided will cover the company’s organizational culture, functional structure, motivational strategies, human resources and employee hiring process. Lastly, the information provided will display why the group of individuals employed by Nordstrom, are categorized as a family oriented business that has established great

Nordstrom can use their eCommerce to have more of a focus on international markets. Nordstrom currently partners with Borderfree, a global eCommerce provider, to offer international shopping (Nordstrom). Nordstrom can focus more on this aspect of its online shopping by promoting the ability to internationally ship products as well as internationally shop. By focusing more on international geographic concentration, Nordstrom can increase the number of customers that internationally

Liquidity ratios measure the short term ability of a company to pay its obligations and meet their needs for maintaining cash. According to Cagle, Campbell & Jones (2013), “A good assessment of a company’s liquidity is important because a decline in liquidity leads to a greater risk of bankruptcy” (p. 44). Creditors, investors and analysts alike are all interested in a company’s liquidity. After computing liquidity

Liquidity In analyzing liquidity of the company, the current ratio is not very telling of a falling company. The company increased its ratio throughout the period of the income statement thus building upon its company assets and allowing for a 6-1 ratio of assets over its liabilities. This implies the company is still able to operate sufficiently even though it did not make its optimum current ratio of about 8-1. However, when one takes the inventory out of the equation with the quick ratio, the numbers show the true strength of short term liquidity. The numbers are still good, and do not indicate failure – but are

Nordstrom falls under the department store category of retailing usually selling upscale durable products. Stores that mirror Nordstrom are Sears, JCPenny, Dillards and Macy’s. These department stores carry a variety of goods from apparel, cosmetics, housewares, electronics and furniture. Each department having its own buying center that’s run by a department head that is in charge of ordering merchandise, running product promotions and managing department employees. Nordstrom is able to