Shares of JWN are -32% over the past 6 months, but soaring in the pre-market on news that they might go private. Truthfully, I can’t blame them — given the toxic environment out there for retailers. As a whole, the company hasn’t done too bad, with sales still managing to grow, albeit low single digits. Net income is terrific, in the range of ~$350m per quarter — but down in the range of 30-50% from prior years.
Perhaps they need to go private in order to sort their business out, without the undue pressure of having to please shareholders.
The stock is +20% on the news, helping boost the stocks of other retailers too.
Peers moving higher:
Macy’s (M) +3.9%,
Kohl’s (KSS) +3.2%,
JC Penney (JCP) +2.4%,
Dillard’s (DDS) +2.4%,
Ralph Lauren (RL) +1.6%,
Abercrombie & Fitch (ANF) +1.4%,
Michael Kors (KORS) +1.3%,
Gap (GPS) +1.2%
Nordstrom’s is a unique property. But if they pull off a going private deal, I could see similar deals for M, JCP and maybe even KSS.
More than 25% of JWN’s float was sold short. Ouch. Roast in hell shorts. Roast in hell.
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JWN is probably starting a trend. Soon other retailers will go private. There’s a traders playground in that space.
Closed out JWN for almost a double.