Talented Blonde CEO: Why Apple Could Hurt Nordstrom Earnings

Speaking to Benzinga, Talented Blonde CEO Kristin Bentz said that it’s really a mixed bag over at Nordstrom, Inc. JWN ahead of their earnings report this afternoon.

Importing Issues

Traditionally, Bentz explained that Nordstrom has been the leader when it comes to luxury department stores. But the retailer is being affected by a port crisis.

“Remember, Nordstrom, at its core, is a footwear company,” Bentz said. “Just about 100 percent of footwear in this country is imported.”

According to Bentz, a shipment that normally takes a week to get to the United States from China is now taking two and a half weeks and then sitting in the cargo container after it’s been off-loaded for about three or four weeks.

The small-business owner will really be hurt by this, Bentz went on to say. But she added that it won’t affect the consumer because big companies will air-freight the merchandise.

“However, it’s going to hit their bottom line, sot hat could be a risk for Nordstrom,” she said.

Bentz mentioned that Nordstrom has also been trying to expand their omnichannel presence through acquisitions and finding different ways to get the consumer, which also costs money.

Luxury Taking A Hit

Luxury stocks are taking a hit right now overall, Bentz said. She thinks that they way they market to consumers doesn’t resonate anymore.

“I think that what consumers define as a luxury product has changed into technology as opposed to luxury goods,” she said. “So I view Apple as a luxury stock, and I think that’s been eating into a lot of the luxury dollar.”