Business In News
Mexican luxury department store Liverpool has reportedly taken a 9.9% passive stake in Nordstrom in a deal valued at $293.8 million, according to Reuters. Liverpool said in a statement that “this operation represents an attractive opportunity to diversify assets geographically.”
The deal makes Liverpool one of Nordstrom’s largest stakeholders. Founder Bruce Nordstrom held a 15.9% stakes as of December 2021, while his sister Anne Gittinger controlled 9.7% of shares, according to data from Refitiv.
Nordstrom reported a 12% sales increase for the quarter ended July 30, 2022 as customers updated their wardrobes and returned to events. However, like many retailers, it revised its outlook downward in the face of rising inflation — revenue growth for fiscal 2022 is now projected at 5% to 7%, down from 6% to 8%.
Higher gas and grocery prices also have taken their toll on Nordstrom’s share price, which has fallen 19% since the start on 2022. In contrast Liverpool’s shares rose 10% since the start of the year, and it posted double-digit revenue growth for Q2 2022 due to good inventory management and a better mix of products.