Nordstrom stock surged 10% because the retailer might go private
Nordstrom's push to go private, which follows a failed one in 2018, comes as consumers remain bogged down by stubborn inflation
Nordstrom stock jumped more than 10% on Tuesday following a report that the retailer is considering going private.
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Reuters, citing unnamed sources familiar with the matter, reports that the department store chain’s founding family is working with investment banking firms Morgan Stanley and Centerview Partners to explore the possibility of taking Nordstrom private. Nordstrom declined to comment to Reuters.
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Nordstrom stock closed up 9.4% on the day.
Nordstrom last tried to go private in 2018. The company’s latest attempt to leave the public market come as consumers, bogged down by stubborn inflation, are reducing their spending on non-essential goods.
The luxury department store chain earlier this month forecasted a subdued financial outlook for 2024, in which it sales could continue to decline. In its latest holiday-quarter earnings report, the company said it expects revenue will be in the range of a 2% decline to 1% percent growth.
Even so, Nordstrom’s profit increased by 12% during the fourth quarter of 2023 to almost $134 million, up from the $119 million it generated during the same period a year ago.
Nordstrom operates 360 stores across the U.S., and also reaches shoppers via its online marketplaces, Nordstrom.com and Nordstromrack.com
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