How Nordstrom Sales Hit $3.78B

Plus, PVH's 90s gamble falls short.

August 28, 2024

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Today is Wednesday, August 28, 2024.

The Early Bird Index today is 73.01.

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Handsfree Passive Income

Did you know you can invest in e-commerce the same way people invest in real estate?

When people invest in multifamily real estate, the process usually consists of purchasing a property and then hiring a management company to deal with everything else.

You can do the same with e-commerce. 

Here are the benefits of partnering with a done-for-you e-commerce agency such as Click Profit:

  • Higher profit margins: When you combine the buying power of hundreds of people, you can drive the cost per unit down. This results in higher margins.

  • Access to better inventory: When you partner with a company that’s been around for a while, they have a massive list of manufacturers and suppliers.

  • Cheaper Operations: When you partner with a company that owns the supply chain, you get higher margins because you can cut out the middleman tax.

Bottom Line: You can own a portfolio of cash-flowing e-commerce brands by partnering with a leading e-commerce agency.

How Nordstrom Sales Hit $3.78B

Despite fears of decreased consumer spending, Nordstrom (NYSE: JWN) jumped 7.71% in after-hours trading on Tuesday after posting strong financial earnings results.

Financials: Nordstrom reported earnings of 96 cents per share in the past quarter, which was better than expected. However, revenue reached $3.78 billion, slightly lower than expected.

Details: Net sales grew 3.4% in the quarter and the gross profit increased 155 basis points. Nordstrom attributed this sales growth to the timing of its Anniversary Sale. Also, sales for Nordstrom Rack (the company’s off-price retail chain) climbed by 8.8%.

Early Bird’s Nest Egg Gains: Nordstrom is facing significant challenges but is strategically focused on expanding its off-price Rack stores to drive growth.

  • Consumers are increasingly seeking value and discounts in the current economic climate.

  • The company opened several new Rack stores last year because they are seen as a profitable investment and a key way to acquire new customers.

Final Thoughts: Economic conditions are not favorable for retailers, but Nordstrom’s off-price strategy is working. The stock is up 15% this year. 

Notables

Notable Earnings Today: Nvidia (Nasdaq: NVDA), Salesforce (NYSE: CRM), CrowdStrike (Nasdaq: CRWD), Abercrombie & Fitch (NYSE: ANF), Chewy (NYSE: CHWY), Victoria's Secret (NYSE: VSCO,) Li Auto (Nasdaq: LI), Kohl's (NYSE: KSS), Affirm (Nasdaq: AFRM), Foot Locker (NYSE: FL), Okta (Nasdaq: OKTA), Bath & Body Works (NYSE: BBWI), Nutanix (Nasdaq: NTNX), Donaldson (NYSE: DCI), Veeva Systems (NYSE: VEEV), Five Below (Nasdaq: FIVE), HP Inc. (NYSE: HPQ), J.M. Smucker (NYSE: SJM), NetApp (Nasdaq: NTAP), CooperCompanies (Nasdaq: COO), Golden Ocean Group (Nasdaq: GOGL), Greif (NYSE: GEF), Patterson Companies (Nasdaq: PDCO), Pure Storage (NYSE: PSTG), Royal Bank of Canada (NYSE: RY).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: FinLitX (Netcapital), Lucky 7 Mining (Netcapital), Absinthia’s Bottled Spirits (Netcapital), Genuine Spirits (Honeycomb), Dice Cream (StartEngine).

Notable Economic Events Today: Crude Oil Inventories (10:30 a.m. ET).

PVH's 90s Gamble Falls Short

PVH (NYSE: PVH), the company behind popular 90s fashion brands, fell 7.81% in after-hours trading on Tuesday after posting mixed financial earnings results.

Financials: PVH reported earnings of $3.01 per share in the past quarter, which was better than expected. But revenue only reached $2.07 billion, which was below estimates.

Powering the Story: Revenue for Calvin Klein decreased by 1% and revenue for Tommy Hilfiger dropped by 4%.

Final Thoughts: PVH, down 14% this year, is struggling in the current environment.

Ambarella’s Record AI Revenue

Shares of the semiconductor company Ambarella (Nasdaq: AMBA) jumped 18.73% in after-hours trading on Tuesday after posting strong financial results.

Financials: Ambarella reported a loss of 13 cents per share and revenue of $63.7 million; both were better than expected.

Final Thoughts: The company said it reached record revenue for its edge AI inference products. Ambarella was down 12% this year before these results.

Tough Day: Why is the crypto market down today? (Cointelegraph)

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