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Nordstrom Enters New York City As Barneys Is Sold

Nordstrom Enters New York City As Barneys Is Sold

Nordstrom, Inc.'s (NYSE: JWN) new seven-floor women’s store in New York saw impressive traffic during its first few days in operation, and the company could be a brick-and-mortar retailer with solid long-term prospects, according to KeyBanc Capital Markets. 

The future of another once-venerable retailer, bankrupt Barneys New York, remains up in the air in the face of a pending sale that could result in the liquidation of Barney’s Madison Avenue flagship store. 

Nordstrom Opens In Manhattan

The long-awaited arrival of the massive Nordstrom department store in midtown Manhattan went well, KeyBanc analyst Edward Yruma said in a Thursday note. 

The analyst said he was impressed with traffic levels after the store opened Thursday, and that even with its size, the store’s layout allows for good sight lines — and there are unique food and beverage operations on each floor.

Investors also seemed impressed, sending Nordstrom shares higher Friday.

Broader Expansion Plans

It’s just one part of an expanding footprint for the Seattle-based retailer, which also said it plans new locations in the Dallas, Chicago and San Francisco markets.

It may be an unusual time to roll out new full-line stores in the face of the e-commerce wave, Yruma said.

"We are confident that the concept can be rolled out in a cost effective way ... in addition to tapping the Manhattan market, we think the store will further reinforce JWN as a fashion destination within the industry.”

The analyst remains bullish on Nordstrom stock, with an Overweight rating and $48 price target.

“We are increasingly confident that we will see the long-awaited inflection in 2020,” Yruma said.

“We believe JWN, with its powerful brand strength and a strong management team, is undervalued at current levels.”

Barneys Uncertainty

Authentic Brands Group — the company behind the Nautica, Nine West, Juicy Couture and Sports Illustrated brands — was the last bidder standing for Barneys following a deadline for final bids on the bankrupt retailer.

A bankruptcy auction that had been scheduled for Monday is now canceled.

It's unclear whether ABG would keep Barney’s flagship Madison Avenue store open, with the future of the outlet dependent on its ability to renegotiate rent, The New York Post reported.

Nordstrom shares were up 1.84% at $37.95 at the time of publication Monday. 

Related Links:

3 Different Views On Nordstrom's Q2 

Large Option Trader Buys Nordstrom Puts Following Big Earnings Jump

Public domain photo via Wikimedia

Latest Ratings for JWN

Feb 2021Gordon HaskettUpgradesHoldBuy
Feb 2021Morgan StanleyMaintainsEqual-Weight
Feb 2021KeyBancMaintainsOverweight

View More Analyst Ratings for JWN
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