Nordstrom’S Was Established In 1901 And Was A Retail Store

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Nordstrom’s was established in 1901 and was a retail store for shoes. Among the stores many goals was to offer a wide selection of merchandise with outstanding quality and service. It was twenty two years before they added a second store, and eventually became one of the largest shoe store chains in the United States. They began offering clothing and accessories for the entire family. Right now, they are one of the top luxury retailers with over 320 stores in 29 states in have expanded into Canada. I have chosen to explore the financial health of Nordstrom from 2013-2014 and also compare it to one of its top competitors; Macy’s. Its other competitors in the market are Dillards, and Neiman Marcus. Macy’s Inc. opened in 1858 as a …show more content…

By using profitability ratios, investors can measure the income or operating success of a company for a given period of time. Earnings Per Share Ratio Nordstrom Earnings Per Share 2014 = 720/190 = 3.79 2013 = 734/194.5 = 3.77 Macy’s 2014 = 1526/354.3 = 4.30 2013 = 1486/384.8 = 3.86 The earnings per share ratio calculates the net income earned on each share of common stock. Nordstrom’s earnings per share was \$3.77 in 2013 and increased to \$3.79 in 2014; while its competitor Macy’s, has an earnings per share ratio of \$4.30 in 2014. This ratio means that for every share of common stock outstanding, Nordstrom has an income of \$3.79 in 2014 and \$3.77 in 2013. Compared to 2013, Nordstrom had an increase of 2 cents in earnings per share, which depicts an increasing earning in its shares of common stock. Macy’s, on the other hand, had an income of \$4.30 in 2014 for every share of common stock outstanding, which is 51 cents higher than Nordstrom’s ratio in 2014. This indicates that Macys’ is more efficient in terms of generating its net income from their common stock outstanding. Return on Assets Ratio Nordstrom Return on Assets 2014 = 720/(9245+8574/2) = 8% 2013 = 734/(8574+8090/2) = 9% Macy’s 2014 = 1526/(21330+21620/2) = 7% 2013 = 1486/(21390+21620/2) = 6.9% Return on assets ratio measures the overall profitability of assets. In 2013,