5 Reasons Nordstrom Inc Shareholders Should be Optimistic About the Future презентация

12, 2015:
Sales increase of 6.6%
Comparable store sales up 0.9%
Net Income of $0.43 per share
Includes $0.17 per share of one-time expenses related to sale of credit card portfolio
Represents -20% drop from same quarter last year

in the face of lackluster sales results:
Peer Macy’s (NYSE: M) shares dropped following disappointing same store sales results of -3.9% on November 11, 2015
Despite strong comparable results, J.C. Penney was dragged down with the sector

future. Here’s why.

retail landscape has changed drastically over the last 20 years
Investing in a mobile purchase-and-pickup applications
Invested in 3 enormous fulfillment warehouses
This has already born fruit:
Online sales were 8% of revenues in FY 2010
Projected to be 25% of revenues in FY 2020
Goal is to provide the “richness of stores with convenience of online”

stores:
Nordstrom Rack, JWN’s off-price chain initiative, continues to exceed expectations:
Has grown from 86 locations in FY 2010 to over 194 today
Expected to grow to over 300 locations by FY 2020
Purchased personalized clothing online retailer “Trunk Club”
Integrating with rest of Nordstrom’s offerings

market in a big way
$1 billion estimated sales potential
Calgar, Ottawa, and Vancouver flagship stores already open
3 stores planned for Toronto in the next year
Early results are extremely positive
Stores already open in Canadian market experienced record-setting openings for any new store opening

capabilities for online purchases
Currently has 3 enormous facilities across U.S.:
Cedar Rapids, IA for full-price order fulfillment
Elizabethtown, PA for full-price order fulfillment
San Bernadino, CA for off-price order fulfillment
Offering free shipping and returns in order to engender customer use and loyalty

Presentation December 7, 2015

has a history of strong operating performance
5 Year Average Return on Equity of 35.02%
5 Year Average Annual Sales Growth of 7.08%
5 Year Average Earnings Per Share Growth of 6.24%
Nordstrom projected to continue to grow at a decent clip through end of the decade
FY 2020 EPS Estimate of $4.96
Implies annualized earnings per share growth of 7.8% through end of the decade

solid
Nordstrom continues to invest in the future while still operating an exceptional retail operation
Given current P/E of 13.4 and forward growth profile the sky is definitely not falling