Nordstrom, Inc. (NYSE:JWN)

Solid margins, solid same store, solid management.

I don't shop at Nordstrom. I think the prices are laughable. I never thought I would ever buy the stock. However, they have been very consistent about raising their dividends over the last decade, and their earnings have seen a rapid acceleration over the last four years. From 2003 to 2006 the return on equity has shot from about 8% to 26%...pretty much in a straight line. Debt has been reduced from 100% to 32% over the same period...also in a straight line. Profit margins are up about 350% over the same period. They have not been diluting shares for the last five years. It is currently selling at a discount to intrinsic value as of feb 9, 2007. At this point it is looking very attractive!

Just look at the chart

High quality merchandise from a customer oriented retailer.

VL

Healthy financials. 5 years continous improvement in ROE, reduction in leverage. No major issue.

Nordstrom, Inc. is a fashion specialty retailer that offers a selection of apparel, shoes, cosmetics and accessories for women, men and children. The company offers its products through Full-Line Nordstrom stores, discount Nordstrom Rack stores, its Faconnable boutiques, and through catalogs and on the Internet.

In the past five years, the premium denim segment of the jeans market has become one of the hottest segments of the apparel industry. Premium-denim business is also one of the best-selling categories for Nordstrom and the company is dedicating huge swaths of floor space to jeans. Besides, Nordstrom is optimistic about its designer business and has recently opened a store in California that will sell renowned designer brands like Gucci and Valentino.

Regular price sales and updated casual wear have fetched good returns in terms of positive same store sales for the women’s apparel business that contributes about 35% to the topline. Gross margin improved in the third quarter primarily due to lower markdowns in women’s apparel and shoes. Same-store sales rise from Nordstrom Rack division perfectly aligns with the positive trends in the growing off-price sector. To expand its merchandise offerings, the company plans to roll out a music program in 2007 by selling CDs both in its stores and online. Furthermore, launching of a new merchandising system in the fourth quarter will bring better prospects.

The company has been one of the best performers amongst its peers in terms of return on equity. Inventory turnover ratio has constantly risen in the past three years. With such a positive outlook and a continuous positive trend in same-store sales, Nordstrom is set to rise high.

Should be a very successful Holiday season

Best in service and experience next to Saks.

Expect positive things today!

Great customer focus.

Once the hype is over from the midterms, this stock will tank. 2007 will be a bear and all of those people flipping houses and buying at Nordstrom will be working there soon enough. With a negative savings rate and a GDP that is 70% consumer spending we are doomed for deflation. China et al will stop buying our paper and rates will have to rise which will choke off the consumer once and for all.

Positive dividend grower; Upper end retailer will survive any "rough" landing!

Great sales and plenty customers coming in the store, I own this stock

Price will reach $55.00 before Feb. '07

Normstroms has a core structure to the buying end. It seems that the buyers understand the market and what moves trends.

Nordstrom is opening its first store in the Boston metro area in summer 2007, expanding its customer base to those not willing to drive to Rhode Island or Connecticut to shop. Controlled and strategic expansion over the past decade has turned Nordstrom into a national retailer, rather than the regional 800-pound gorilla I grew up with.

If they sold an ETF for cocaine I'd buy it. Since they don't, I figure the way my mother and sister-in-law shop at Nordstrom rivals the behavior of a drug addict. I've been waiting for better prices, and I think they are here.