Nordstrom INC. due is Sunday

module2.xlsx

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Sheet1

	Most Likely Scenario Sahvelet, Sehmus: Sahvelet, Sehmus: Not:In the Most likely scenario, it is assumed that income and expense will increase according to the average of past years.								Best Case Sahvelet, Sehmus: Sahvelet, Sehmus: The best case scenario is aimed at increasing the income compared to the previous years and decreasing the cost. The reason for this is that one of the important competitors leaves the market and the cost of internet sales is lower than normal sales. The rate of increase in Income tax expencese has been determined according to the company's income tax rate in the past years.
	Sahvelet, Sehmus: Sahvelet, Sehmus: Not:In the Most likely scenario, it is assumed that income and expense will increase according to the average of past years.	Fiscal Year	2016	2017	2018	2019	2020	2021		Fiscal Year	2016	2017	2018	2019	2020	2021
	Net Sales	14,498	15,137	15,480	16,049	16,542	17,101		Net Sales	14,498	15,137	15,480	16,204	16,945	17,898
	Credit Card Revenues, Net	259	341	380	394	406	420		Credit Card Revenues, Net	259	341	380	398	416	439
	Total Revenues	14,757	15,478	15,860	16,443	16,948	17,520		Total Revenues	14,757	15,478	15,860	16,602	17,361	18,337
	Total Revenue increase by percantage	-	4.9%	2.5%	3.7%	3.1%	3.4%		Total Revenue increase by percantage	-	4.9%	2.5%	4.7%	4.6%	5.6%
	Cost of Sales and related buying and Occupancy Cost	9,440	9,890	10,155	10,515	10,848	11,199		Cost of Sales and related buying and Occupancy Cost	9,440	9,890	10,155	10,464	10,718	10,950
	Selling, general and administrative (“SG&A”) expenses	4,315	4,662	4,868	5,041	5,200	5,369		Selling, general and administrative (“SG&A”) expenses	4,315	4,662	4,868	5,016	5,138	5,249
	Goodwill Impairment	197	0	0	0	0	0		Goodwill Impairment	197	0	0	0	0	0
	Earnings before interest and income taxes (“EBIT”)	805	926	837	888	901	952		Earnings before interest and income taxes (“EBIT”)	805	926	837	1,121	1,505	2,138
	Interest expense, net	121	136	104	108	111	115		Interest expense, net	121	136	104	107	110	112
	Earning before income taxes	684	790	733	780	790	837		Earning before income taxes	684	790	733	1,014	1,395	2,026
	Total cost increase by percentage except income tax expense	-	4.2%	2.9%	3.4%	3.1%	3.1%		Total cost increase by percentage except income tax expense	-	4.2%	2.9%	3.0%	2.4%	2.1%
	Income tax expense	330	353	169	175	181	186		Income tax expense	330	353	169	406	488	608
	Net earnings	354	437	564	605	609	651		Net earnings	354	437	564	609	907	1,418
	Profit Margin	2.40%	2.82%	3.56%	3.77%	3.68%	3.81%		Profit Margin	2.40%	2.82%	3.56%	3.76%	5.35%	7.92%
	identify the assumptions
1)	You can see market share of the leading department store in the United states on the graph. As you can see on the graph Sears's market share is 7% in United States. They close their 96 stores, which makes 182 of the total stores all around the US. My first assumption is that the total market share of Sears, which will close one-third of its stores, is also reduced by one-third their all sales. This means their market share, which is 7%, will drop to 4.69%. 2.31% will be shared equally by other companies. For this reason, every company on the chart will increase their sales by 0.33%.
2)	There is a serious increase in Nordstrom's digital sales. The digital sales of the company, which showed a 20% increase in 2017, increased 23% in 2018 digital sales. While digital sales accounted for 29% of the company's total sales in 2017, this rate reached 34% in 2018. In these years, when Internet sales have increased significantly, Nordstom will increase its digital sales again compared to last year. For this reason, digital sales of Nordstormun are expected to increase by 33%, which accounts for 37% of total digital sales. The biggest benefit of digital sales to the company is to reduce costs. The company has 379 stores and 74,000 employees. This constitutes a very important part of the company's costs. Increasing the digital sales of the company in the coming years means decreasing the number of stores and the number of employees.
	Referances
	https://www.businessinsider.com/sears-to-close-96-more-stores-kmart-list-sears-transformco-2019-11
	https://www.forbes.com/sites/walterloeb/2018/08/20/nordstrom-digital-growth-is-enormous-and-will-grow-further/#5aecc0b95d0b
	https://www.google.com/search?safe=active&client=safari&rls=en&sxsrf=ACYBGNRhplBef42ic-vodcRsEnPs7wtZjg%3A1580367081541&ei=6XwyXp3NIKSqytMPoL2pgAQ&q=how+many+employees+does+nordstrom+have&oq=how+many+em+does+nordstrom+have&gs_l=psy-ab.1.0.0i7i30l4.5206.5493..6566...0.4..0.113.206.1j1......0....1..gws-wiz.......0i71.sYtrrEB2Jl0
	https://shop.nordstrom.com/c/about-us
	https://www.statista.com/statistics/1057374/department-store-retailers-market-share-united-states/

https://www.businessinsider.com/sears-to-close-96-more-stores-kmart-list-sears-transformco-2019-11 https://www.statista.com/statistics/1057374/department-store-retailers-market-share-united-states/ https://shop.nordstrom.com/c/about-us