Article Summary
The article proposed for consideration is titled “Nordstrom Second Quarter Earnings Call” and it is dedicated to the financial performance of Nordstorm Inc., which is the “leading fashion specialty retailer of the US” (Toncheva, 2007) in the second quarter of 2007. The author of this article is Albena Toncheva, and in her paper she ponders on the basic figures that characterized the financial performance of Nordstorm up to August, 4, 2007, as well as on the reasons for the company’s increase in sales and revenues. Thus, among the main points of the article the following can be singled out:
- rise of per share earnings to 71 cent which is 4 cent higher than at the same time in 2006;
- increase in total sales of Nordstorm for 5.2% up to $2.39 billion;
- forecasts and purpose outline of Nordsortm for the third quarter of 2007 (Toncheva, 2007).
Problems Mentioned
Basically, three main problems are discussed in the article. They are the reasons that allowed Nordstorm to improve its performance in the second quarter of 2007, the company’s plans for the third quarter of the same year, and the strategies used by Nordstorm to “build deeper connections with its most loyal customers.” (Toncheva, 2007). The first point is explained by the record sales of “fall season merchandise” before the actual start of the season and the advanced sales of “accessories and men’s apparel” in retail stores (Toncheva, 2007). In the third quarter, Nordstorm plans to increase its sales for 4 – 5% more with approximately 64 cents per share price. Moreover, the company modifies its product line and plans to open 3 new stores in Massachusetts, Michigan, and Colorado. As for the last point, it demands special solutions that the article also proposes.
Solutions Proposed
To ensure the development of the customer base and improve contacts with loyal clients, Nordstorm plans to implement the strategy of inviting its most loyal customers to stores before the actual start of sales of the new lines of merchandise. This strategy was used by Nordstorm in the first and the second quarters of 2007 and contributed substantially to the company’s success resulting in a 7.9% increase in anniversary sales compared to the figures for the same period of 2006 (Toncheva, 2007). Another popular and modern strategy of work with a loyal customer base is the online trade-in merchandise, especially in products unavailable in stores. These strategies are planned, according to the article, by Nordstorm to improve its performance in the third quarter of 2007.
Reflection
To express my own opinion on the article considered, it is a rather informative article which was retrieved from a reliable online source specialized in economics, finance, trade, etc. The relevance of the article is obvious as it presents the most precise data about Nordstorm financial performance for the second quarter of 2007 as received from the officials of the company including President Blake Nordstorm, Merchandising President Pete Nordstorm, Chief Financial Officer Mike Koppel, and Investor Relations Manager R. J. Jones (Toncheva, 2007). The article considers the basic factors of a company’s success in the specified period, offers important issues in the company’s work and ways of their solutions. Thus, the article by Albena Toncheva is a reliable source of information on retail trade in the sphere of fashion merchandising.
Works Cited
Toncheva, Albena. “Nordstrom Second Quarter Earnings Call.” 123 Jump. com. 2007.