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. (NYSE: JWN) ahead of its earnings report Thursday afternoon.
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, so that could be a risk for Nordstrom,” she said.
Bentz mentioned that Nordstrom has also been trying to expand its 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 (NASDAQ: AAPL) as a luxury stock, and I think that’s been eating into a lot of the luxury dollar.”
Nordstrom traded down heading into its report, closing at $77.14.
Latest Ratings for JWN
|Feb 2017||Susquehanna||Initiates Coverage On||Neutral|
|Feb 2017||Goldman Sachs||Downgrades||Neutral||Sell|
|Jan 2017||Credit Suisse||Upgrades||Neutral||Outperform|
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