JWN – Market expectations are for Uniform ROA to remain near historical lows, but management is confident about digitalization, cash savings, and their designer business

• Nordstrom, Inc. (JWN:USA) currently trades near historical lows relative to UAFRS-based (Uniform) assets, with a 1.1x Uniform P/B. At these levels, the market is pricing in expectations for profitability to remain near historical lows, but management is confident about their digital business, cash savings, and their designer business
• Specifically, management is confident more than half of their business is now digital and that digital shopping trends are accelerating. Furthermore, management is confident customers are responding well to new merchandise initiatives, that they expect better cost savings flow through in 2021, and that the designer business continues to be strong