Nordstrom Stock Soars 28% in 2025 After Ryan Cohen Acquires Major Stake

In a dramatic market move, Nordstrom Inc. (JWN) shares surged 28% in early 2024 following news that billionaire activist investor Ryan Cohen has acquired a significant stake in the struggling retail giant.

Highlights

• Nordstrom's stock experienced a remarkable 28% jump after Ryan Cohen, founder of Chewy and chairman of GameStop, invested heavily in the company.
• Cohen is expected to advocate for boardroom changes to revitalize the retailer amid ongoing sales challenges.
• The deadline for new board nominations is February 17, ahead of Nordstrom’s annual shareholder meeting.
• The Nordstrom family retains substantial influence, holding around 30% of shares and key executive roles.

Ryan Cohen, renowned for his activist investment style, has become one of Nordstrom's top five non-family shareholders. His involvement signals potential shifts in the company’s leadership, especially as Nordstrom grapples with inventory surpluses and disappointing holiday sales that led to a downward revision of 2023 forecasts.

Reports indicate Cohen aims to replace at least one board member, with speculation focusing on Mark Tritton, the head of Nordstrom's compensation committee and former CEO of Bed Bath & Beyond. Concerns about Tritton's close ties with the Nordstrom family may be a catalyst for change. Nordstrom has expressed openness to Cohen's perspectives, signaling possible collaboration.

Time is critical, as the nomination window closes on February 17. To implement board changes, Cohen will need to garner support from the Nordstrom family, who collectively control a significant portion of shares and leadership positions.

Over the past eight years, Nordstrom's stock has declined nearly 70%, reflecting the broader challenges faced by brick-and-mortar retailers competing against e-commerce platforms. Cohen's investment could mark a turning point for the iconic retailer as it seeks to adapt to the evolving retail landscape.

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