$JWN Nordstrom Crushes Expectations
Yesterday, Nordstrom $JWN quietly beat expectations and raised its full-year guidance sending the stock up 9% after the report. This came as a surprise to many investors following the awful reports from Target $TGT and Walmart $WMT. Let's dig in and see if the financials could’ve helped us see this move coming.

$JWN has been cut in half from its previous 52wk highs but is holding up surprisingly better than other retailers like $ANF, $GPS, and $URBN. Maybe some investors saw this move coming.

Heading into earnings, $JWN Nordstrom had the highest revenue growth and the third-highest valuation multiple. Perhaps, investors could’ve argued the stock was undervalued leading up to its report.

Unlike the other retailers on this list, Nordstrom $JWN has seen its margins rise in recent quarters. This focus on profitability could’ve been an early sign of an earnings beat.

Lastly, we can’t forget about the new metric we just added, free cash flow! When looking at the smaller retailers, Nordstrom $JWN delivered the second-highest amount of free cash flow per dollar of market cap. Although it is easy to look at the data in hindsight, trends can be a helpful part of the research process.
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A Weekly Update on Happenings in Special Situations
  • M&A activity in the cybersecurity space is frothy. 3 large deals last week – Datto $MSP sale to Kaseya, SailPoint $SAIL sale to Thoma Bravo, and Barracuda sale to $KKR.


  • Atlantia (BIT: ATL) received a $63bn buyout proposal from the Benetton family and Blackstone $BX in what would be the 2nd largest global M&A deal of the year.

  • Kohl’s $KSS said bidders are refining their offers and securing financing; Franchise Group $FRG reportedly joined the process.

  • In a continuation of recent trends, increased incidence of M&A activity from across the pond. CareTech (LSE: CTH) has competing bids. Ideagen (AIM: IDEA) is the subject of takeover interest. Ocean Outdoor (LSE:OOUT) is in sale talks.

  • Nielsen $NLSN investor WindAcre now owns 25% of the company, and still plans to block its sale.

  • Peloton $PTON activist Blackwells Capital reiterated its call for a sale of the company.

  • Guess? $GES activist Legion Partners received support from ISS and Glass Lewis in ongoing proxy fight.

  • Hearing rumors that Gap $GPS may be pressured to spin-off its Athleta biz.
$LULU Brand Loyalty
In 2019, (pre-pandemic) $LULU sales per sq foot were roughly five times of competitor $GPS Athleta. I think this stat shows Lululemon's competitive advantage in their brand loyalty.
Vuori has been taking some market share from $LULU but otherwise I'd agree that Lulu is the cornerstone of athleisure
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Upcoming Earnings Calendar (Feb 28th - Mar 4th)
Hey guys! Here's the upcoming earnings calendar! Two of my holdings, $SE and $SOFI report next week, so I'll be paying significant attention to both. Other than that, I'm also interested in seeing what retailers like $TGT $BBY and $COST have to say about supply chain issues and inflation.

Good luck to everyone!

If you'd like an easier way to track earnings dates, you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.

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Clothing Retailers Reporting Strong Sales
Several clothing retailers reported earnings this week. Reactions to their results were mixed, but the general trend regarding sales was positive.

Consumers seem to be in a healthy position, buying more than before the pandemic. Abercrombie & Fitch even had its best Q3 in terms of sales since 2014!

Here are the full quotes in case you're interested:





What We’re Watching Next Week

A holiday-shortened week in the U.S. but a lot is packed into three days

Monday: PBOC interest rate decision. Earnings from $ZM $URBN

Tuesday: Existing home sales, PMIs, $BBY $GPS $DKS $JACK $DLTR report earnings

Wednesday: PCE data, new home sales, initial jobless claims, FOMC minutes
Upcoming Earnings Calendar, Nov 22-27
A very light earnings week up ahead. I'm mostly interested in Zoom $ZM. I think the stock's valuation is starting to make some sense if they can continue growing their paid user base or adding other features. I'm also interested in seeing what Best Buy $BBY has to say about the consumer demand for electronics and some comments on supply chain issues.

Remember, if you'd like an easier way to track earnings dates, you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.

Monday

Tuesday:

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Thursday:

Friday:
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Why would two companies announce on an American holiday when the markets not open, then why would you announce on the day after a holiday, when it's a short trading day. Some companies just make wonder about commonsense.
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My current positions here with return so far. Over most of the past year I've been 100% long $GOOGL. No plans to sell $3000 LEAPs. No idea how long I'll hold the $TSLA hedge. Shares in $GPS are kind of meme bc I love Kanye. Will probably get into some more monthly $GOOGL calls soon. Still feel current price is cheap and future looks amazing.
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