Nordstrom Revenue and Guidance Bring Pressure
Nordstrom Inc. (NYSE: JWN) has reported earnings for its second quarter. The upscale retail powerhouse’s earnings came in at $0.95 in earnings per share on $3.3 billion in revenue. Thomson Reuters had estimates of $0.95 in earnings per share and $3.39 billion in revenues. Nordstrom had a decent quarter with a handy increase in net sales by 6.2%. The total company comparable sales for the second quarter increased by 3.3%.
Nordstrom updated guidance for the year with an increase in net sales in the range of 6.5% to 7.5%. The guidance on the year for earnings per share was updated to the range of $3.80 to $3.90. The Thomson Reuters consensus estimates are $3.90 in earnings per share and $13.42 billion in revenues for the year.
The company had already entered into an agreement to acquire Trunk Club for $350 million in Nordstrom stock, and the deal is expected to close in the third quarter. The earnings per share is expected to take a hit in the range of 3% to 5% as a result.
Nordstrom shares closed at $68.69 and the reaction in the after-hours has been down 3.6% to $66.20. Its 52-week trading range is $54.90 to 70.71 and the consensus analyst price target is $71.48.