Nord'S Department Store Is Under Pressure Or Will Be Privatized.

According to the world clothing and shoe net, Nordstrom Inc. (NYSE:JWN), one of the most important department stores in the United States, has caused low value in view of the traditional retail industry being suppressed by Wall Street.

The privatization of department stores is getting closer and closer to reality.

On Tuesday, CNBC received the news of its loved one, saying that the founder family and major shareholder of Nordstrom Nord were close to joining the US private-equity giant Leonard Green&Partners to privatize the company.

It is alleged that Leonard Green&Partners will provide $1 billion in assets to Nordstrom Nord's family for privatization pactions.

Leonard Green&Partners is closely related to Nordstrom Inc. Nord, a British owned by the fund.

Group Arcadia Group's high street

Topshop's US expansion is carried out through Nordstrom Nord's department store. It is also a major shareholder of the US brand J.Crew. However, J.Crew or Topshop are in a very difficult position at present.

Sources also said that since June, the Nordstrom Nord family has been actively contacting private giants such as KKR and Apollo. Although the final agreement with Leonard Green&Partners has not yet been finalized, other parties can make destructive negotiations on potential agreements.

In addition, the news also pointed out that the Nordstrom Nord family wants to raise 70-80 billion dollars to negotiate with the bank, and may make specific offers for privatization in the next few weeks.

Previous review:

In June 9, 2017, Nordstrom Inc. Nord, a paper announcement, announced that group co CEO Blake W.Nordstrom, Peter E.Nordstrom and Erik B.Nordstrom, as well as president of the store James F.Nordstrom, chairman of the Emeritus James, and the company formed by the company were exploring privatization of the group.

As soon as the news came out, the stock price immediately rose by more than 13% on the day of the announcement, and the market jumped nearly 20%.

The discussion of privatization of Nordstrom Inc. Nord startled the retail industry and the Wall Street. It also expressed the ill feeling that the traditional department stores in the United States had been suppressed by Wall Street investors for a long time.

Tang Xiaotang, founder of No Agency, a fashion industry research and consulting firm, said that he was happy to see retailers entering the privatization process. Large shareholders wishing to have the ability could shout out the "death of Wall Street" and let the market see the value of traditional retail businesses. "If BELLE's most valuable enterprises in China are not respected by the market, those who have half a silk connection with Alibaba will be able to turn over the stock price in second days. I can not believe that those companies with profit making capability and their own hematopoietic function enterprises need to keep listing."

He said that the demand for financing by a mature retail enterprise is far less than that of the electricity supplier business, and the retail industry is no longer an era of financing expansion.

The Nordstrom Nord family has a 31.2% stake in the group. Privatization means that the consortium needs to buy the remaining 70% shares of the group. However, since the family has always wanted to get rid of the "entanglement" of Wall Street and short-term shareholders, privatization may not only be aimed at the company, but also a heavy drug for the current department store.

Company status analysis:

Nordstrom Inc. Nord dragon has been committed to multi-channel development and is one of the best performing department stores. Despite this, the company has not been recognized by investment.

On Monday, the US Department Store announced the launch of a new business, Nordstrom Local, which will open a small service store next week, which does not sell any commodity. The store will provide services such as changing clothes and manicure.

The first Nordstrom Local in West Hollywood has 8 locker rooms, which consumers can try on and order online.

However, the same attempt was not approved by Wall Street. The company's share price plummeted by 5.4% on Monday.

After the news of the latest progress of privatization on Tuesday, the stock price of Nordstrom Inc. Nord dragon rose more than 7% after the opening of the stock market, which opened more than 6% at the opening of Wednesday. At 10:03 p.m. Eastern time, AM reported 47.73 US dollars, or 5.95%, and its market value was close to 8 billion US dollars.

In the past two quarters, Nordstrom Inc. Nord has achieved 1.7% growth in same store sales, reversing the previous two quarters' setback, far exceeding the 0.5% decline in the market forecast, significantly better than the mid-range department store counterparts Macy 's Inc. (NYSE:M) Messi department store group and Kohl' s Corp. (NYSE:KSS).

But the company's release of information on the improvement of the department store has also been ignored by Wall Street.

Moody 's Investors Service analyst Christina Boni pointed out that department store's overall performance in the two quarter showed a slight improvement, but it is still too early to judge whether the business is stable.

Craig Johnson, President of Customer Growth Partners, a retail research firm, believes that the industry has hit bottom, but Greg Portel, the managing partner of A.T.Kearney retail department, doubts whether the recent improvement can be established. Christina Boni points out that the return season and holiday season in the second half of the year will be a more important indicator.

Bill Lewis, director of AlixPartners retail business, also believes that if the passenger flow of the three and fourth quarter is resumed and the operating profit rate has been continuously improved, we can conclude that there is an inflection point in the market.

Industry background analysis:

The traditional department store industry has become one of the main industries for short investors in Wall Street. When the news of privatization came out in early June, Ihor Dusaniwsky, director of S3 Partners research of financial analysis company, said the short bet for Nordstrom Inc. Nord was $1 billion 200 million.

NYSE's data show that by the middle of May, JWN's short positions amounted to 17%.

The most recent privatization case in the US Department Store is the acquisition of $3 billion by Sycamore Partners, a private equity fund, to the US Department Store Belk and Inc. (BLKIA.OTCBB).

Nordstrom Inc. Nord is currently about 2 billion dollars in debt. If the Nordstrom family is privatized, it will need additional capital raising of about $5 billion 500 million.

The market believes that, given the current healthy operation and real estate assets of Nordstrom Inc. Nord, privatization of the Nordstrom family will not be too difficult, but some analysts say the privatization is not good for the Nordstrom family, because long-term debt is a drag on any company.

But most people say that the privatization of the Nordstrom family to Nordstrom Inc. Nord is different from that of the market dominated by PE dominated leveraged pactions.

Tony Scherrer, Smead research director of information management company, said in an interview with reporters that the retailer is like hell at the moment. If there is no respect in the open market, why do we still need to stay there?

{page_break}

Jim Cramer, a well-known financial host at CNBC, commented that the privatization of Nordstrom Inc. Nord Strait would help the group to take further profit investment, without looking at the face of Wall Street.

Due to the development of traditional retail industry to compete with Amazon.com Inc. Amazon for many channels, in the past few years, they have invested heavily in the channels and channels of e-commerce.

In the 2016 fiscal year, Nordstrom Inc. Nordstrom.com's revenue increased by 9.5% to 2 billion 519 million US dollars, and Nordstromrack.com/HauteLook discount business income increased by 31.7% to 700 million US dollars.

Obviously, for any traditional retailer, it has already had enough of Wall Street and investors to look beyond the threshold of traditional retailing. On the contrary, for the electricity supplier industry, it is another optimistic attitude.

"The privatization of Nordstrom Inc. Nord can be regarded as a retaliation for the investment industry."

Tang Xiaotang, founder of No Agency, said that regardless of the outstanding performance of the first quarter of the world's largest retailer Wal-Mart Stores Inc. (NYSE:WMT), it is still the actual performance of other department stores in the United States. "The weakness of the retail industry in recent years can not be summed up as the traditional mode is lagging behind or the electricity supplier mode is advanced. The overall downturn is even more apparent. The traditional retail industry is still the leader of the retailing industry's right to speak, but the retail industry has to undergo phased adjustment after over 30 years of expansion. The future traditional retail industry is still the leader of the market after multi-channel development."

The traditional retail industry's dissatisfaction with the investment industry did not start with Nordstrom Inc. Nodes Tron. As early as February this year, the largest department store in the US Macy s Inc. (NYSE:M) Messi department store tried to use the means of burning jade to "retaliate" the long-term pressure of Wall Street on the group, and the aggressive investors' insatiable advance.

In early February, market rumors Macy "s Inc." Messi department store tried to sell to rival Hudson's Bay Co. (TSE:HBC) (Hudson Bay Group), and the two sides had already had initial contact.

Despite the downward trend, the value of the Macy 's Inc. Messi department store in the open market is also clearly underestimated as Nordstrom Inc. Nord.

Starboard Value LP, who has repeatedly asked Macy s Inc. Messi department store to release real estate value, said conservative estimates that Macy 's Inc. Messi property group has real estate value of $21 billion.

In addition, as the Centennial department store brand and the first largest department store in the United States, the brand value intangible assets of Macy Messi Inc. s department store can not be underestimated.

Tang Xiaotang predicts that once Nordstrom Inc. Nord is privatized, the privatization of the retail industry in the future will further intensify.

Previously, China's largest fashion retailer, the largest footwear company Belle International Holdings Ltd. (1880) Belle International Holdings Ltd completed, and the New World Store China (0825.HK) of the Zheng Yutong family in Hongkong also received New World Development Co (00017.HK) privatization invitation of HK $2 per share, and the above two retail enterprises are now much smaller than the initial market value.

Tom Forte, an analyst at Maxim Group, an investment bank, said Amazon has created a cold winter in the traditional retail industry. Now everyone is trying to determine who is the last survivor.

Nevertheless, Tom Forte also expressed the underrated attitude of Nordstrom Inc. Nord, calling it a pessimistic fear of investors in the industry.

Bill Smead, chief executive of Smead Capital Management, is also unfair to Nordstrom Inc. Nord, saying that every step of the company is right, but the market is not buying it. However, Smead holds 500 thousand shares of Nordstrom Inc. Nord stron stock.

Tang Xiaotang, founder of No Agency, said that the difference between the value of electricity providers and traditional retailers is a reflection of the first market trend. At present, capital and capital are all hoarded on technology related companies, and investors must recover the cost or get high returns.

Tom Forte's "nuclear" Amazon group, which aimed at the traditional retail industry, only started to make profits two years ago. China's first big business JD.com Inc. (NASDAQ:JD) Jingdong was the first to achieve quarterly profits in the first quarter.

More interesting reports, please pay attention to the world clothing shoes and hats net.