Nordstrom performance ‘begs for an activist role,’ says William Blair

William Blair analyst Dylan Carden keeps a Market Perform rating on Nordstrom after the Wall Street Journal reported that Ryan Cohen has taken a sizable stake in the retailer. Nordstrom’s performance over the last decade "begs for an activist role as it has continued to show inconsistent performance, and more recently underperformed department store peers despite an arguably better brand and loyal customer base," the analyst tells investors in a research note. Blair believes management has been distracted by costly and largely unsuccessful bets on new ventures such as Trunk Club, Local and a New York City flagship. The firm says the 30% stake the Nordstrom family controls will be a hurdle for Cohen, but it adds he has historical performance at his back in pushing for change. Blair expects "severe volatility" in Nordstrom trading from here "if GameStop and Bed Bath & Beyond are any guide."