Nordstrom Inc. (NYSE: JWN) has been seeing a dangerous slowdown in its business that goes as far back as 2020. The department store chain is facing a range of issues on the macroeconomic front impacting its market competitiveness. The new ownership shift comes at a much-needed time for a change.
Market Ecstatic over Nordstrom Ownership Shift
The stock for Nordstrom Inc. (JWN) has been performing spectacularly since the start of 2023, taking on a sustained climb from $15 to almost $22, during this time. This growth curve impressively picked up the pace earlier today after news that the famous billionaire, Ryan Cohen, invested in a significant stake in the company. The market is clearly excited about Cohen’s decision-making moving forward, as he has vowed to implement serious board-level changes to companies he owns. Moreover, he holds the reputation of an activist investor and is known to trigger meme stock bullish rushes, as he did with the legendary Gamestop stock.
Wider Troubles Facing JWN
The news of Ryan Cohen’s investment in JWN comes as a breath of fresh air after the company continued struggling through one problem after the other. Just recently, the credit rating agency, Fitch, downgraded Nordstrom to the junk category, pointing to the serious risk creditors would face when lending to the company. It is clear that the company came under pressure with the macroeconomic problems impacting the wider consumer sector, and may see its problems exacerbate if a recession is to take place. The downgrading by Fitch further worsens financing for the company, at a time when it is already struggling to achieve healthy levels of liquidity.
Nordstrom has been struggling to perform relative to its competitors since the outbreak of the Covid-19 pandemic in 2020 and has seen its financial position dwindle ever since. The billionaire Ryan Cohen may be the change that the company needs to survive.