Shares of luxury retailer Nordstrom (JWN) rose about 30% in pre-market trading on Friday after news of activist investor Ryan Cohen acquiring a large stake in the company. Ryan Cohen is known for sparking large jumps in meme stocks such as GameStop a few years ago, and has now become one of the top five non-family shareholders of Nordstrom.
Analyst’s Views on Nordstrom’s Performance
William Blair analysts, led by Dylan Carden, noted that Nordstrom’s performance over the past decade calls for an activist role. Despite having a better brand and loyal customer base, Nordstrom has underperformed compared to its department store peers. The luxury department store was significantly impacted by the Covid-19 pandemic and has struggled to recover since.
Ryan Cohen’s Plans for Nordstrom
According to sources familiar with the matter, Ryan Cohen plans to recommend changes to the board to enact cost-cutting measures and reverse the stock’s poor performance. He aims to replace at least one director and may target former Bed Bath & Beyond CEO Mark Tritton for removal.
Nordstrom’s Response
Nordstrom did not immediately respond to a request for comment, but a spokesperson was quoted by The Wall Street Journal as saying that the company is open to hearing Cohen’s views and will continue to take actions it believes are best for the firm.
Upcoming Results Report
Nordstrom did not reply to a request for comment, but the company’s spokesperson was quoted by The Wall Street Journal as saying that it would be open to hearing Cohen’s views and would continue taking actions it believed were best for the firm.
Conclusion
In conclusion, Nordstrom’s shares skyrocketed after news of activist investor Ryan Cohen acquiring a large stake in the company. The company’s underperformance over the past decade and recent holiday sales softness have made it a prime target for an activist investor like Ryan Cohen, who aims to implement cost-cutting measures and potentially replace directors. Only time will tell how Ryan Cohen’s involvement will impact Nordstrom’s future performance.
