Nordstrom (JWN)

Risks

• The COVID-19 global pandemic has had and may continue to have an adverse effect on our business and results of operations.
• If we are unable to successfully execute our customer strategy or evolve our business model, it could negatively impact our business and future profitability and growth.
• Our business could suffer if we do not appropriately assess and react to competitive market forces and changes in customer behavior.
• Our customer relationships and sales may be negatively impacted if we do not anticipate and respond to consumer preferences and fashion trends or manage inventory levels appropriately.
• Any inability to mitigate global labor and merchandise pricing pressures or disruptions may negatively impact our profitability.
• Improvements to our fulfillment, inventory, buying, vendor payment and accounting processes and systems could adversely affect our business if not successfully executed.
• If we do not effectively attract, retain, train and develop talent and future leaders, our business may suffer.
• Our program agreement with TD, or changes to that agreement, could adversely impact our business.
• Even if we take appropriate measures to safeguard our information, network and environment from security breaches, our customers, employees and business could still be exposed to risk.
• Our business may be impacted by information technology system failures or network disruptions.
• Our customer, employee, vendor, third-party partner, landlord and other stakeholder relationships could be negatively affected if we fail to maintain our corporate culture and reputation.
• Our business depends on third parties for the production, supply and delivery of goods, and a disruption could result in lost sales or increased costs.
• Distribution and marketing of, and access to, our products depends on a variety of third-party publishers and platforms. If these third parties limit, prohibit or otherwise interfere with or change the terms of the distribution, use or marketing of our products, it could adversely affect our results of operations.
• The concentration of stock ownership in a small number of our shareholders may limit a shareholder’s ability to influence corporate matters and impact the price of our shares.
• If we fail to appropriately manage our capital, we may negatively impact our operations and shareholder return.
• Owning and leasing real estate exposes us to possible liabilities and losses.
• The investment in existing and new locations may not achieve our expected returns.
• Our revenues and operating results are affected by the seasonal nature of our business and cyclical trends in consumer spending.
• A downturn in economic conditions, currency fluctuations, inflation, increased unemployment and bankruptcy rates, changes in fiscal stimulus and other external market factors has had and could have a significant adverse effect on our business and stock price.
• Our stores located in shopping centers and malls have been and may be affected by consumer traffic at shopping centers and malls.
• The results from our credit card operations could be adversely affected by changes in market conditions or laws.
• Our business and operations could be materially and adversely affected by severe weather patterns, climate change, natural disasters, widespread pandemics, epidemics, civil unrest and other natural or man-made economic, political or environmental disruptions.
• We are subject to certain laws, litigation, regulatory matters and ethical standards, and compliance or failure to comply with or adequately address developments as they arise could adversely affect our reputation and operations.
• Changes to accounting rules and regulations could affect our financial results or financial condition.