When we talk about Nordstrom net worth, it’s more than just a number—it’s a reflection of their financial success.
At Ando Money, we focus on bringing you insights into what drives this company’s profit margins, operational income, and their overall financial standing.
Let’s dive into how their revenue trends, store expansions, and smart financial decisions contribute to their position in the market.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Nordstrom, Inc. |
| Full Name | Nordstrom, Inc. |
| Website | www.nordstrom.com |
| Industry | Retail |
| Traded as | NYSE: JWN |
| ISIN | US6556641008 |
| Founded | 1901 |
| Founders | John W. Nordstrom, Carl F. Wallin |
| Country/Territory | United States |
| Headquarters | Seattle, Washington, USA |
| Chief Executive Officer | Erik Nordstrom |
| Number of Employees | 60,000 |
| Market Cap | $3.60 billion |
| Total Assets | $8.643 billion |
| Total Equity | $948 million |
| Revenue | $7.006 billion (YTD August 2024) |
| Net Income | $122 million (Q2 2024) |
What is the Net Worth/Market Cap of Nordstrom in 2024?
As of October 2024, Nordstrom’s market capitalization is $3.60 billion. This places the company among notable players in the retail sector, though it’s far from the largest retail powerhouse.
Nordstrom’s market cap reflects a consistent and resilient financial performance despite a highly competitive market.
When comparing Nordstrom’s net worth to other notable brands, it’s clear that many retail giants have stronger positions in terms of financial size.
Still, Nordstrom’s focus on revenue growth and profitability secures its place in the market. Companies related to Nordstrom in this space include:
Curious about the companies with the highest financial positions? Check out which businesses have the largest financial success on our richest companies page.
Nordstrom Financial Performance Overview
How Revenue Trends Shape Our Financial Success
Nordstrom has seen positive revenue growth, particularly in the second quarter of 2024, where net sales increased by 3.4% compared to 2023.
This growth was driven by multiple factors, including stronger sales at Nordstrom Rack, which saw an 8.8% increase in sales.
Additionally, digital sales contributed significantly to the growth, with a 6.2% rise, representing 37% of total sales.
Nordstrom’s focus on offering a diverse product assortment, from beauty and activewear to kids’ clothing, has played a key role in maintaining steady revenue streams.
The gross merchandise value (GMV) also increased by 3.5%, showing healthy growth across various product lines.
Core Factors Contributing to Profit Margins
Profit margins at Nordstrom improved due to several key factors. The gross profit margin rose to 36.6%, marking a 155 basis point increase from the previous year.
This improvement was primarily due to better pricing strategies and efficient inventory management.
Nordstrom’s operating income (EBIT) for Q2 2024 stood at $190 million, while adjusted EBIT was even higher at $244 million, reflecting a strategic focus on margin expansion through cost control and operational efficiency.
However, selling, general, and administrative (SG&A) expenses accounted for 34.4% of net sales, a slight increase due to supply chain challenges.
Contribution of Total Assets and Equity to Financial Stability
With total assets valued at $8.643 billion, Nordstrom has maintained a solid asset base.
These assets, primarily in property and equipment, play a critical role in supporting their store operations and online business.
Total equity is $948 million, reflecting the company’s ability to sustain growth through its own resources.
While Nordstrom’s liquidity is healthy with $679 million in cash reserves, inventory levels also grew by 8.3%, ensuring they can meet consumer demand while avoiding stock shortages.
Importance of Store Expansion and Digital Transformation
Nordstrom continues to invest in store expansion, with eleven new Nordstrom Rack stores opened in fiscal 2024, contributing to increased sales. Moreover, digital transformation has been pivotal in driving their growth, particularly in online sales.
Their digital sales, accounting for 37% of total revenue, show the growing importance of online channels in today’s retail landscape.
These strategic decisions to balance between brick-and-mortar and digital shopping experiences are part of Nordstrom’s long-term strategy to enhance customer engagement and revenue generation.
Strategic Financial Decisions Driving Profitability
Nordstrom’s profitability has been further bolstered by operational efficiencies, particularly in supply chain and technology.
In Q2 2024, Nordstrom recorded $54 million in supply chain asset impairment, but this has been offset by improvements in overall operational costs.
Looking ahead, the company’s outlook for fiscal 2024 projects an EBIT margin between 3.0% and 3.4%, with adjusted EPS ranging from $1.75 to $2.05, reflecting a stable future as Nordstrom continues to make strategic investments in its operations and technology infrastructure.
FAQs About Nordstrom
How is Nordstrom managing its inventory levels?
In Q2 2024, Nordstrom reported an 8.3% increase in inventory, aligned with a 3.4% increase in sales.
This demonstrates effective management to ensure products meet demand, particularly for high-growth categories like beauty and activewear.
What was Nordstrom’s revenue in the latest quarter?
For the second quarter of 2024, Nordstrom reported $3.785 billion in net sales, an increase of 3.4% compared to the same period in 2023.
How is Nordstrom performing in terms of operating income?
Its operating income for Q2 2024 was $190 million, with adjusted EBIT of $244 million, showing a strong performance amid challenging market conditions.
What is its current liquidity position?
As of August 2024, Nordstrom had $679 million in cash reserves, ensuring strong liquidity to fund operations and growth initiatives.
How is Nordstrom handling its digital transformation?
Its digital sales accounted for 37% of total sales in Q2 2024, reflecting their successful shift to a robust online shopping platform alongside physical stores.
Conclusion
Nordstrom’s financial performance in 2024 shows resilience, with steady revenue growth and strategic decisions driving profitability.
If you’re curious about more financial insights or want to share your thoughts, visit Ando Money.
