The Bull Case for Nordstrom’s Pricey Trunk Club Acquisition

In the days since Nordstrom officially confirmed its acquisition of Trunk Club, I've had a surprising number of people ask me if I think the deal "makes sense." Many of them, even if willing to acknowledge the synergies between the two companies, balk at the reported $350 million price. The skeptic's case goes as follows: Trunk Club is hardly a novel or proprietary concept and Nordstrom could easily duplicate the experience using its own brand and infrastructure. Moreover, the men's apparel category is far smaller than the women's and doesn't merit such a big bet.