Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, luxury retailer Nordstrom (NYSE:JWN) has received a distressing two-star ranking.

With that in mind, let's take a closer look at Nordstrom's business, and see what CAPS investors are saying about the stock right now.

Nordstrom facts

Headquarters (founded)

Seattle, Washington (1901)

Market Cap

$2.84 billion


Department Stores

TTM Revenue

$8.49 billion


President Blake Nordstrom (since 2000)

CFO Michael Koppel (since 2001)

Net Income Growth (average, last five years and TTM)

22.4% and (25.9%)


Macy's (NYSE:M)

CAPS members bearish on JWN also bearish on

Sears Holdings (NASDAQ:SHLD)
General Motors (NYSE:GM)

CAPS members bullish on JWN also bullish on

Johnson & Johnson (NYSE:JNJ)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 59 of the 170 All-Star members who have rated Nordstrom -- some 35% -- believe the stock will underperform the S&P 500 going forward. These bears include jstegma and SwordAgain, both of whom are ranked in the top 3% of our community.

Two weeks ago, jstegma wrote that the high end is the scariest place to be: "Consumer discretionary and it's pretty darn easy to trade down to a more moderately priced department store. Nortstrom's is gonna get crushed in this recession."

In a pitch from one week later, SwordAgain elaborates on that bearish reasoning:

Company warned about its current reporting quarter twice. First lowering estimates in November and then lowering them again this week. The first time, the stock tanked about 25%. This time, nearly nothing. Likely to get hit hard on further reductions in estimate. Little visibility into true conditions. Company has much higher debt than other companies retail. High end retailer, more likely to be hurt by declining revenues as well. ... Just had severe stock downturn. However, still likely to warn and disappoint. Likely to lower [same store sales] estimates. Likely to announce restructuring. High debt.

What do you think about Nordstrom, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.