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Nordstrom Has Reason To Be 'Mad As Hell' At Wall Street

Nordstrom Has Reason To Be 'Mad As Hell' At Wall Street

Shares of Nordstrom, Inc. (NYSE: JWN) were trading higher by more than 11 percent late Thursday morning in reaction to the company's announcement that some members of the Nordstrom family are looking to take the company private.

Aside from owning 100 percent of their name-sake company, the Nordstrom family would be free to operate without the scrutiny and criticism of investors and analysts, CNBC's Jim Cramer explained during Thursday's "Squawk on the Street" segment. Specifically, when the high-end fashion retailer wants to spend money on its business to better compete with, Inc. (NASDAQ: AMZN), analysts are still quick to "hate them."

In essence, the Nordstrom family is "mad as hell" with Wall Street and signals an end to their patience, Cramer continued. After all, stores remain profitable and the company also boasts a good e-commerce presence so there is nothing fundamental wrong with the business.

Nevertheless, Nordstrom family taking the company private doesn't solve its competitive problems as Amazon has accelerated its efforts to steal market share in the fashion and apparel space. But at the end of the day the Nordstrom family appears to be more than willing to "put its money where its mouth is."

At time of publication, shares of Nordstrom were up 11.14 percent at $44.99.

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Image Credit: By Prayitno from Los Angeles, USA - Santa Monica Place ~ a Shopping Mall, CC BY 2.0, via Wikimedia Commons

Posted-In: Apparel CNBC fashion NordstromNews Asset Sales Movers Media Best of Benzinga


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