Retailer Nordstrom’s Shares Jump 9% On Private Report

(CTN News) – Nordstrom shares closed 9% higher on Tuesday following a report that the department store chain has been exploring the possibility of going private. This is after the news broke that Nordstrom is considering privatization.

People familiar with the matter have told Reuters that the founders of the retailer are in the process of discussing whether private equity companies might be interested in investing in the company, according to people familiar with the matter at Morgan Stanley and Centerview Partners.

I requested Morgan Stanley to comment on a request for comment, but they declined to do so.

It appears that the deal between the two companies will not materialize, according to Reuters. It was not the first time Nordstrom had attempted to take the company private in the recent past, but a previous attempt failed.

Despite the fact that consumers are feeling a little squeezed by the inflation and have been watching how much they spend on apparel and other discretionary items, Nordstrom has had a difficult time driving sales as a result of the current competitive retail landscape.

Early this month, the company released a gloomy forecast for the year 2024 that was based on sales numbers from last year.

In relation to the company’s outlook for 2024, Nordstrom anticipates the company’s revenue will grow between 1% and 2% from the same period in 2023, according to the company’s outlook.

Before Tuesday’s announcement, the company’s shares had dropped roughly 7% during the course of the year in the five months preceding Tuesday’s announcement.

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