We give Wal-Mart credit for its labor (cost) improvement in the quarter and hope this can continue.

However, the importance of this transaction is that it provides Nordstrom with additional talent, expertise and access to the designer category. This should allow Nordstrom to capitalize on strong sales trends they have been experiencing over the past two years.

A slight premium to the market is about as far as the P/E multiple should go until management provides us with a clear action plan to lower controllable costs.

The most surprising aspect of the earnings release was management's more conservative outlook for the rest of the year, driven by the impact of higher oil prices on consumer spending.

However, the importance of this transaction is that it provides Nordstrom with additional talent, expertise and access to the designer category, ... This should allow Nordstrom to capitalize on strong sales trends they have been experiencing over the past two years.

A slight premium to the market is about as far as the P/E multiple should go until management provides us with a clear action plan to lower controllable costs,