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Actionable news in JWN: NORDSTROM Inc,

Nordstrom downgraded at Citigroup on concerns it will struggle to compete

Nordstrom occupies a “best-in-class’ position, but may not be equipped to manage a competitive retail landscape.

Nordstrom Inc. stock was down 1.6% in Tuesday trading after it was downgraded to neutral from buy at Citigroup, with analysts expressing concern that the luxury retailer will have trouble competing with promotions at down-market rivals.

Nordstrom’s JWN, +1.23% inventory levels were “fairly lean” going into the fourth quarter, said Citigroup. However, apparel retailers as a whole are faced with tons of merchandise that has had trouble selling over the past few months because of unseasonable weather.

“Nordstrom is not set up to be a promotional retailer, and while it has altered promotional strategy somewhat over the last couple of years, it is tough to counter mid-tier competitors that frequently offer 50% to 70% sales,” analysts wrote...