Nordstrom, Inc. (NYSE:JWN) announced the suspending of its dividends and share buyback program as precautionary measures to strengthen its financial position in response to the rapidly changing market uncertainty due to the coronavirus (COVID-19).
The two main actions taken are:
- suspending of its quarterly cash dividend beginning in the second quarter of fiscal 2020. The Company remains committed to paying dividends over the long-term and will seek to resume payment when appropriate.
- drawing down $800 million on its revolving line of credit.
Last week, Macy’s Inc (NYSE:M), Nordstrom’s peer, also announced that it will suspend its quarterly dividend and will borrow $1.5 billion from a revolving credit facility.