Nordstrom, Inc. has recently released its 10-Q report, providing an insight into the company's financial performance and operations. Nordstrom, Inc. is a fashion retailer that offers a wide range of brand-name and private-label merchandise for women, men, young adults, and children through various channels, including its branded stores, online platforms, and clearance stores. The company was founded in 1901 and is headquartered in Seattle, Washington.
In its 10-Q report, Nordstrom, Inc. discussed critical accounting estimates, highlighting the preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) and the impact of estimates, judgments, and assumptions on reported financial amounts. The company emphasized the significance of its critical accounting policies and estimates, particularly focusing on merchandise inventories. Nordstrom, Inc. elaborated on its method of valuing merchandise inventories at the lower of cost or net realizable value using the weighted average cost method and the recording of reserves for excess and obsolete inventory based on specific identification of units.
Additionally, the report addressed recent accounting pronouncements, particularly the SEC's adoption of the final rule under SEC Release No. 33-11275, which requires new disclosures regarding climate-related risks and severe weather events in registrants' audited financial statements. Nordstrom, Inc. noted that the annual disclosure requirements related to climate-related disclosures will be effective for the company in the fourth quarter of 2025, pending resolution of the stay, and stated that it is evaluating the impact of this final rule on its disclosures. The market has reacted to these announcements by moving the company's shares -2.2% to a price of $23.46. Check out the company's full 10-Q submission here.
