Retail

Nordstrom Announces Canadian Expansion Ahead of Earnings

Trey Thoelcke

Published: February 16, 2016 7:10 am

Last Updated: January 13, 2020 1:10 pm

Ahead of its fourth-quarter earnings report this week, Nordstrom Inc. (NYSE: JWN) has announced the expansion of its footprint in Canada. Specifically, the Seattle-based retailer said Tuesday that it plans to open a Nordstrom Rack store in Toronto, Ontario.

The company previously had announced the opening of three full-line stores in the Toronto area beginning this year, and it already has full-line stores in Calgary, Ottawa and Vancouver.

Nordstrom is scheduled to report fourth-quarter and fiscal-year results after markets open on Thursday. This American upscale fashion retailer is expected to post earnings per share (EPS) of $1.22 and revenues of $4.22 billion for the quarter. That compares to the $1.32 per share and $4.04 billion it posted in the same period of last year. However, analysts overestimated EPS in three of the past four quarters.

Full-year EPS are expected to total $3.38, which would be down about 9% year over year. But the consensus forecast has revenues at $14.44 billion, or almost 7% higher than in the previous year. As with the EPS estimate for the quarter, expectations for full-year earnings have slipped a bit in the past 60 days.

Karen McKibbin, president of Nordstrom Canada, said:

We’re excited to announce our first Nordstrom Rack in Canada in such a wonderful location and provide Canadian customers another way to shop their favorite Nordstrom brands at great prices, We want to be a part of compelling locations across the country and this is a great first step. We look forward to getting our doors open to serve customers in Toronto.

Nordstrom Rack is the off-price retail division of the company, which claims to have 194 Nordstrom Rack stores.

Shares of Nordstrom closed most recently at $48.91, in a 52-week trading range of $44.49 to $83.16. The consensus price target is $55.72, yielding an implied upside of more than 12%.