Struggling Nordstrom is going all-in on New York City in a major turnaround attempt - but the market doesn't seem to care
- Nordstrom opened its new flagship New York City women's store on Thursday.
- Shares sank as much as 2.24% by mid-morning.
- Wall Street reactions to the store were positive but didn't translate into share gains - most analysts still have "neutral" ratings on the company's stock.
- Read more on Business Insider.
Nordstrom's seven-story flagship New York City store opened Thursday to an icy reaction from the stock market.
Shares sank as much as 2.24% Thursday after the store, Nordstrom's first in the city that offers women's goods, opened its Midtown location. The flagship joins Nordstrom's men's store, several Nordstrom Racks, and merchandise-less Nordstrom Local hubs on the Upper East Side and in the West Village in the city.
The new NYC flagship is the largest single-project investment that Nordstrom has ever made, according to CNBC. It shows that the company's making a big bet on the location amid a tough year, where it's struggled alongside other retailers to adjust to changing consumer trends and continue to grow sales in a shifting retail environment.
Even after the company's positive second-quarter earnings and a report that the founding family wants to take a larger stake in the retail chain, shares have struggled to gain. Nordstrom has fallen more than 23% this year, while the S&P 500 index has risen more than 20%.
The consensus from some analysts is that a physical location in New York City is good for Nordstrom, but they maintained neutral ratings on shares.
That's in line with Wall Street's expectations for the company. Of the analysts that cover Nordstrom, 15% say to "buy," 70% say to "hold" shares, and 15% rate the shares "sell," according to Bloomberg data.
Here's what analysts are saying about Nordstrom following the opening of its new store in NYC: