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Monday, October 26, 2020  Spokane, Washington  Est. May 19, 1883
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News >  Business

Nordstrom slumps, targets slashed after weak holiday sales

Nordstrom shares sank on Wednesday, one day after the Seattle-based chain gave an update to its holiday sales that were seen as disappointing, prompting a number of analysts to lower their price targets.

Goldman Sachs was particularly bearish on the news, downgrading the stock and sharply lowering its target price for the next 12 months. “In short, we got this call wrong,” it admitted to clients in a note.

The stock closed down 4.8 percent at $45.01 Wednesday, after having dropped as much as 8.9 percent earlier in the day. The stock is down nearly 33 percent from a November peak of $66.98.

Goldman Sachs (Alexandra Walvis)

Has “fading confidence in the outlook for the core department store business, and see choppy gross margins as likely offsetting good news on costs as the company cycles generational investments.”

Slashes price target to $50 from $73 “to reflect our lack of conviction on an upward inflection in full-price execution, incremental concern on the high income and tourist consumer, and recent financial market weakness.” Goldman’s previous target had been only slightly below the Street-high view of $75.

Downgrades Nordstrom to neutral from buy and removes it from conviction list.

Deutsche Bank (Paul Trussell)

Getting an update was unexpected, but the weakness of the numbers was not.

The results “reflected weaker than expected full-line and solid off-price trends.”

Price target cut to $62 from $64.

Piper Jaffray (Erinn Murphy)

“Some of the tailwinds of 2018’s strong North American macro are nearing an end & geo-political uncertainty rises; dept. stores continue to have their structuring challenges & we remain concerned on the overall dept. store group into 2019.”

Lowers price target from $47 to a Street-low $43.

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