SEATTLE, WA - Nordstrom Inc . (NYSE:JWN), a leading fashion retailer with a market capitalization of nearly $4 billion, has notified its employees of an upcoming blackout period for its 401(k) Plan, which will temporarily suspend certain participant transactions. This suspension is in anticipation of the company’s forthcoming merger with Norse Holdings, Inc. According to InvestingPro data, Nordstrom’s stock is currently trading near its 52-week high of $24.99, having delivered an impressive return of approximately 31% over the past year.
The blackout, starting at 4:00 p.m. Eastern Time on May 15, 2025, will restrict plan participants from engaging in activities such as loans, withdrawals, and distributions involving the Nordstrom Stock Fund. The exact duration of the blackout is currently undetermined, as it hinges on the finalization of the merger, projected to occur during the week of May 18, 2025. The company maintains a strong financial position, with InvestingPro analysis showing a "GOOD" overall financial health score and robust profitability metrics, including a healthy free cash flow yield of 19%.
The company has communicated this development to its directors and executive officers through a separate notice on Monday, detailing the trading prohibitions applicable during this period. The notice aligns with regulatory requirements under the Sarbanes-Oxley Act and the SEC’s Regulation BTR.
Nordstrom’s merger with Norse Holdings, Inc. positions the retailer to become a wholly-owned subsidiary of the parent company. The blackout period is a procedural step to ensure all stock transactions within the employee benefit plan are settled before the merger’s completion.
Employees seeking further information regarding the blackout can contact Nordstrom’s Chief Legal Officer without charge for two years following the blackout period’s conclusion.
This news is based on a recent SEC filing by Nordstrom. The information presented is factual, and there is no endorsement or subjective assessment of the company’s actions or potential outcomes.
In other recent news, Nordstrom reported normalized earnings for the fourth quarter of $1.10 per share, exceeding consensus estimates by $0.17, with revenues totaling $4.32 billion, which narrowly missed expectations by $5 million. The company revealed plans to go private following an acquisition by the Nordstrom Family and El Puerto de Liverpool, S.A.B. de C.V., with a cash offer of $24.25 per share, expected to close within 2025. Additionally, CFRA analyst Zachary Warring upgraded Nordstrom’s stock rating from Sell to Hold, increasing the price target to $24.00, citing anticipation of improved operating metrics. Nordstrom also announced retention bonuses for key executives amid its ongoing merger with Norse Holdings, Inc. to ensure stability during the transition.
Starbucks (NASDAQ:SBUX) has appointed Cathy R. Smith as its new chief financial officer, succeeding Rachel Ruggeri. Smith, who previously served as CFO at Nordstrom, brings extensive experience from her roles at various major companies. Her appointment is part of Starbucks’ strategic leadership changes as the company focuses on future growth. Meanwhile, insights from the Shoptalk 2025 event, attended by executives from companies like Nordstrom, highlighted the retail industry’s optimistic outlook, driven by advancements in AI and machine learning. Key themes included the importance of AI-driven personalization and the adoption of new marketing strategies targeting Gen Z consumers.
These developments reflect significant changes and strategic moves within Nordstrom and Starbucks, underscoring their efforts to adapt to evolving market conditions and enhance their competitive positions.
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