Here are some reasons why I’m interested in this stock. I’d like to ask you, what you think about this stock.
• Ryan Cohen owns about 4 % of the company
• There’s a decent dividend yield
• There’s potential of a buyout. A special committee has been formed to evaluate bids
• Unprofitable locations have shuttered including Canadian ones. The company has decided to focus more on profitability than growth
• Growth is still an ambition and it’s happening rapidly as they are opening many Racks; 22 this year.
• They are able to shift gears depending on the retail climate- currently expanding the off price business but one day maybe they’ll focus on banner stores if the climate is appropriate.
• Merchandise of many categories. If women’s apparel is in decline, they can boost their selections of kid’s apparel, active etc.
• There’s a big online presence. Digital sales represented 34 % of total sales in the most recent quarter.
• Resiliency due to a large selection of merchandise. When Nike isn’t trending, Adidas, Vuori, Hoka and On will drive sales instead.
On a 5 year timeline JWN has performed poorly. However, it’s up more than 70 % since November 13, 2023 indicating that it is in the midst of recovery.
Thanks for all comments!
Leave a Reply