Investors will be keeping close tabs on the Nordstrom Inc. conference call Thursday afternoon after the retailer reports second-quarter results.But what they’re hoping to hear won’t be necessarily just about earnings. Investors told WWD they are hoping to glean some hint on the status of the possible management-led buyout that the company in June said was being explored.Currently Wall Street’s consensus estimate is for diluted EPS of 63 cents on projected sales of $3.75 billion.Analyst Adrienne Yih at Wolfe Research, said she expects "ongoing negative comps, particularly at frontline stores, as management maintains promotional and inventory discipline. We expect management to continue to pursue a management-led take private effort. We note ongoing pricing pressure and foresee a highly promotional [second half], especially as Amazon amps up its apparel effort through both branded partnerships and private label fashion brands.”Most investors still believe that the management-led buyout process, if it were to be concluded, would need to have some resolution by mid- to late September in order to get financing and other approvals completed by year-end. There’s no immediate need to get a deal completed, either because there isn't any debt or refinancing issue that’s kicking up any short-term deadline or because there’s no activist investor pushing for a quick conclusion. However, the general feeling among some investors is that the nine independent board members — excluding family board members Peter, Blake and Eric, who are not considered independent — probably wouldn’t want the process to drag into next year. That’s because it would leave too many questions unanswered about the future, such as what the capital structure could look like further down the road.And while the passage of two months into the exploration process is hardly an eternity, that hasn’t stopped some investors from trying to read the tea leaves.The retailer is planning on having a general investor meeting with a select group on Aug. 23, and the pitch initially was to have a family member speak at the meeting. It is understood that investor meeting will no longer include a family member, and that has some thinking that perhaps there are ongoing in-depth discussions between family members and one or two private equity firms that might be interested in financing a management-led buyout. The thinking is that speaking at the general investor meeting and at the same time participating in talks for a management-led buyout would be a conflict of interest, said one financial source.Some investors are scratching their heads as to why the family is thinking of taking the company private. The consensus is that a buyout is more likely to occur at $50 a share than at $52. But a buyout at $50 isn’t exactly a premium, meaning that most of the proceeds would go to the private equity investor and leave little left on the table to help the family grow the company, whether through investments in technology or the refurbishment of stores.Shares of Nordstrom on Monday closed down 1.1 percent to $46.88 on the New York Stock Exchange.A spokeswoman for Nordstrom did not return a request for comment. A spokesman for Moelis & Co., the financial advisor, declined comment.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)