Macys vs Nordstroms
Financial Statement Analysis: Macy’s Inc. vs. Nordstrom, Inc.
MACY’S, INC.
a. Macy’s, Inc. is a retail organization operating retail stores and Internet websites under two brands (Macy’s and Bloomingdale’s) that sell a wide range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods. Macy's’ competitors include other middle priced-ranged department stores including Nordstrom, Bed Bath & Beyond, Belk, Bon Ton, Burlington Coat Factory, Dillard’s, Gap, J.C. Penney, Kohl’s, Limited, Lord & Taylor, Neiman Marcus, Nordstrom, Saks, Sears, Target, TJ Maxx and Wal-Mart. p. 4, 10-K
b. Macy’s fiscal year ends on the Saturday that is closest to January 31st of each year. For 2010 it ended on January 29th, 2011. For 2009 it ended on January 30th, 2010. For 2008 it ended on January 31st, 2009.
c. Depreciation of owned properties is provided primarily on a straight-line basis over the estimated asset lives, which range from fifteen to fifty years for buildings and building equipment and three to fifteen years for fixtures and equipment. F-10, 10-K
d. Merchandise inventories are valued at the lower of cost or market using the last-in, first-out (LIFO) retail inventory method. p. 23 and F-17, 10-K
e. The largest source of cash from financing activities was through the issuance of common stock providing $43 million. F-7, 10-K
f. The largest amount of cash used for investing activities was $339 million dollars on purchasing property and equipment in 2010. p.20, F-7, 10-K
g. The stock price at the end of the 2010 fiscal year was $22.99(Jan 28, 2011) compared to $15.93 at the beginning of the fiscal year (Jan 29, 2010). Company stock was at a low point at the beginning of the 2010 fiscal year. It reached its peak value of $23-$24 around April-May 2010. The stock reached a low point of $17 around mid-July. By early November it reached $25-26. It was quite stable from November to the
MACY’S, INC.
a. Macy’s, Inc. is a retail organization operating retail stores and Internet websites under two brands (Macy’s and Bloomingdale’s) that sell a wide range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods. Macy's’ competitors include other middle priced-ranged department stores including Nordstrom, Bed Bath & Beyond, Belk, Bon Ton, Burlington Coat Factory, Dillard’s, Gap, J.C. Penney, Kohl’s, Limited, Lord & Taylor, Neiman Marcus, Nordstrom, Saks, Sears, Target, TJ Maxx and Wal-Mart. p. 4, 10-K
b. Macy’s fiscal year ends on the Saturday that is closest to January 31st of each year. For 2010 it ended on January 29th, 2011. For 2009 it ended on January 30th, 2010. For 2008 it ended on January 31st, 2009.
c. Depreciation of owned properties is provided primarily on a straight-line basis over the estimated asset lives, which range from fifteen to fifty years for buildings and building equipment and three to fifteen years for fixtures and equipment. F-10, 10-K
d. Merchandise inventories are valued at the lower of cost or market using the last-in, first-out (LIFO) retail inventory method. p. 23 and F-17, 10-K
e. The largest source of cash from financing activities was through the issuance of common stock providing $43 million. F-7, 10-K
f. The largest amount of cash used for investing activities was $339 million dollars on purchasing property and equipment in 2010. p.20, F-7, 10-K
g. The stock price at the end of the 2010 fiscal year was $22.99(Jan 28, 2011) compared to $15.93 at the beginning of the fiscal year (Jan 29, 2010). Company stock was at a low point at the beginning of the 2010 fiscal year. It reached its peak value of $23-$24 around April-May 2010. The stock reached a low point of $17 around mid-July. By early November it reached $25-26. It was quite stable from November to the
References: [1] "Fitch Rates Nordstrom 's Note Issuance 'A- '; Outlook Stable." Market Watch. N.p., 07 Oct 2011. Web. 14 Oct 2011. . [2] Maheshwari, Sapna. "Nordstrom 's Lowest-Yield Debt Show Resistance: Corporate Finance." Bloomberg. N.p., 07 Oct 2011. Web. 14 Oct 2011. . [3] "Shop Around With These 6 Retail Stocks." Seeking Alpha. N.p., 07 Oct 2011. Web. 14 Oct 2011. . [4]FitzGerald, Drew. "S&P Lifts Mac 'ys back to investment grade rating." Market Watch. N.p., 18 May 2011. Web. 16 Oct 2011. .