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Why Shares Of Nordstrom Surged Even After Weak Results? Piper Jaffray Analyst Explains

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Nordstrom, Inc. (NYSE: JWN) came out with worse-than-expected results on Thursday.

Even after weak results, shares of Nordstrom opened higher on Friday and have continued to trade up. Neely Tamminga, Piper Jaffray managing director, was on CNBC to explain why the shares of the company didn’t reacted badly to the results.

“Nordstrom is emerging as the most customer friendly, friction-less shopping experience, it’s the top-line results that we think investors are reacting to this morning. It was a solid top-line number,” Tamminga said.

Related Link: Talented Blonde CEO: Why Apple Could Hurt Nordstrom Earnings

They Plan To Increase Their Capital Expenditure By 60 Percent This Year, What Are They Going To Spend It On?

“It’s across the board,” Tamminga replied. “It’s Canada, it’s new rack stores, it’s also for their human capital around their Internet sites as well and so, what we like about this [story] is they are very focused on returns on investments and we think we are going to continue to see ROIC improve as they make these investments.”

Is There A Lot Of Incremental Sales To Be Had In Canada?

“We think ultimately it will be about 10 percent of their overall company," Tamminga said. “Once they are fully rolled out over in Canada. Keep in mind their headquarters have been near Seattle, Washington, they have seen a great deal of traffic from Vancouver for many, many years. They might actually have a closer beat on the Canadian consumer than people might realize.”

Latest Ratings for JWN

DateFirmActionFromTo
Jul 2019DowngradesBuyNeutral
Jun 2019DowngradesNeutralSell
Jun 2019UpgradesReduceHold

View More Analyst Ratings for JWN
View the Latest Analyst Ratings

Posted-In: CNBC Neely Tamminga Piper JaffrayAnalyst Color Analyst Ratings Media

 

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