The Nordstrom Family Will Add The Same Name, Nord

The Wall Street Journal quoted sources as saying that the Nordstrom family intends to increase its holdings of Nordstrom Inc. (NYSE:JWN) Nodes Tron department store from 1/3 to more than 50%.

News prompted Nord's stock price to rise more than 10% on Wednesday afternoon, at the highest value of $33.92, the biggest one-day gain in nearly a year. Closing gains narrowed, but still rose 7.89% to $33.11.

Nord rumor declined to comment.

According to sources, the family name of the Department Store wanted to buy a large share of the stock at a premium, thereby raising its existing shareholding ratio. However, it may encounter opposition from other independent directors of the company.

In mid 2017, Nordstrom filed a $50 privatization offer for the company, but due to the delay in the holiday season, the company's board of directors rejected the deal at a low price in early 2018.

However, the traditional department store industry in the United States returned to the same level after 2018, after a 10 year rare increase in 2017. Nodes Tron's stock price is less than half of its peak in 2018.

Sources also said the Nordstrom family wanted to find an outsider to replace Erik Nordstrom and Peter Nordstrom. Blake Nordstrom, one of the three brothers of Nordstrom, died of illness at the beginning of this year and was only 58 years old.

The latest quarterly report shows that in the first quarter of fiscal 2019 in May 4th, the number of Nodes Tron accounts for 31% of the total revenue was only 7% year-on-year growth, significantly slower than that in the four quarter and 25% in the same period last year. It also lost the Macy s Inc. (NYSE:M) Messi Department store, the largest US Department store retailer with double-digit growth.

In addition, the total sales of women's clothing were sluggish, and the new membership plan with digital priority weakened the physical passenger flow because of ignoring traditional customers. In the first quarter, the total revenue of the group decreased by 3.3% to 3 billion 443 million US dollars per year, less than US $3 billion 580 million of the market expectation, and the total price and discounted sales decreased by 5.1% and 0.6% respectively. The group did not provide comparable sales data.

Nodes Tron's net profit in the first quarter dropped 57.5% to $37 million compared with $87 million in the same period last year, and EPS also cut from $0.51 to $0.23, far behind the market expected $0.43.

This month, the department store will open its two quarter earnings season.