The stock of Nordstrom Inc. leaped nearly 8 percent Wednesday on a report that Nordstrom family members are seeking to raise their stake in the company to more than 50 percent from around the current 33 percent.
Nordstrom’s stock rose 7.9 percent to $33.10 on Wednesday.
Meanwhile, several other department stores also saw stock gains, though they were smaller and possibly spurred by the Federal Reserve’s decision to cut the interest rate by a quarter of a point, marking the first interest rate cut since the Great Recession of 2008. Dillard’s Inc.’s stock rose 1.2 percent to $72.78; Kohl’s Corp. rose 1.1 percent to $53.86; Macy’s Inc. rose 0.9 percent to $22.73, and J.C. Penney Co. rose 0.5 percent to 80 cents.
In a policy statement, the Fed indicated: “In light of the implications of global developments for the economic outlook as well as muted inflation pressures, the committee decided to lower the target range for the federal funds rate.”
After the Fed signaled that the rate cut should not necessarily be read as a harbinger of future cuts, the Dow Jones Industrial Average fell more than 300 points. Consequently, other major retailers saw stock price declines. Amazon.com Inc. slipped 1.7 percent to $1,866.78; Walmart Inc. lost 1.5 percent slipping to $110.38; Target Corp. closed down 0.6 percent to $86.40, and TJX Cos. Inc. dropped 0.8 percent to $54.56.
The report on Nordstrom appeared in the Wall Street Journal Wednesday. A Nordstrom spokeswoman said the company would not comment on the speculation. The report also cited unnamed sources that Nordstrom’s board has been seeking an outsider to replace copresidents Erik and Pete Nordstrom.
Last year, the Nordstrom’s proposal to take the company private was rejected by a special committee of the board. The Nordstroms offered $50 a share when the stock was trading about $10 less. Lately, the company’s business has been slumping and the stock has been hovering just over $30. Nordstrom could get a lift in its business when it opens its big women’s flagship on the northeast corner of Broadway and 57th Street. The opening is scheduled for Oct. 24.