Low store traffic remains a concern

Article Excerpt

NORDSTROM INC. $38 remains a hold. The company (New York symbol JWN; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 157.8 million; Market cap: $6.0 billion; Price-to-sales ratio: 0.6; Dividend suspended in March 2020; TSINetwork Rating: Extra Risk; www.nordstrom.com) owns and operates 358 stores in the U.S. and Canada. Those locations sell upscale clothing and footwear. The stock has rebounded strongly from its March 2020 low of $12. That’s largely due to its ability to cope with a sharp jump in online purchases. In its fiscal 2021 fourth quarter, ended January 30, 2021, online sales jumped 24% in the quarter and accounted for 54% of total sales. However, customer traffic at its bricks-and-mortar stores will likely remain weak until a larger percentage of the population is inoculated with a COVID-19 vaccine. Nordstrom is still a hold. hold. …