Economic factors, such as higher gas prices and mortgage rates for subprime borrowers, aren't affecting Nordstrom's customers nearly as much as they're hitting shoppers of retailers that cater to lower-income consumers. Wal-Mart's
Keep in mind that a quirky calendar year has shifted the timing of certain periods. In this case, the August numbers were positively affected, while October numbers were a bit deflated.
I've long been bullish on Nordstrom, and this report just reinforces my belief in the company. It offers luxury goods and enviable customer service. Many companies say they're interested in the customer, but I've often found that to be mere lip service. At Nordstrom, though, good customer service is ingrained in the culture. The company spends a lot of time, money, and effort to train employees. The stores offer personal shoppers, and the website includes personal consultants to help you with everything from beauty to design.
The company that treats customers like kings will always remain the envy of the fiefdom. And with Nordstrom's trailing price-to-earnings ratio of 17, I'd advise investors to jump on the bandwagon before everyone else realizes this is a chance to get luxury at a fairly good bargain.