Nordstrom margins benefiting from healthier inventory, says Argus

Argus analyst Kristina Ruggeri keeps a Buy rating and $21 price target on Nordstrom. The company had been hurt by intense discounting to reduce unwanted inventory following the pandemic and also faced pressure from weaker economic conditions and soft sales to lower-income customers, but its inventory is now healthy and margins are benefiting from more full-priced sales and supply-chain optimization, the analyst tells investors in a research note. The firm adds that it is positive on the company’s focus on expanding its Rack stores, which attract new and younger customers to the Nordstrom brand and are the largest source of new customer acquisition for the company.