Nordstrom Underwhelms With Earnings and Weak Comparable Sales
Nordstrom reported disappointing fiscal fourth-quarter financial results after the markets closed on Thursday.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Nordstrom Inc. (NYSE: JWN) reported fiscal fourth-quarter financial results after the markets closed on Thursday. The company had $1.17 in earnings per share (EPS) on $4.19 billion in revenue, compared to consensus estimates from Thomson Reuters that called for $1.22 in EPS on revenue of $4.22 billion. The same period from the previous year had $1.32 in EPS on $4.04 billion in revenue.
Fourth quarter net sales increased 5.2% and comparable sales increased 1.0%, consistent with a comparable sales increase of 0.9% in the third quarter.
At the same time, off-price net sales, which consist of Nordstrom Rack stores and Nordstromrack.com/HauteLook, increased 12% and these comparable sales increased 3.6%.
[nativounit]
During the quarter, the company repurchased 12 million shares of its common stock for $675 million. A total of $800 million remains under its existing share repurchase board authorization.
In terms of the fiscal full year guidance, Nordstrom expects net sales to increase 3.5% to 5.5%, comparable sales to increase 0% to 2%, and EPS in the range of $3.10 to $3.35. There are consensus estimates that call for $3.37 in EPS on $14.43 billion in revenue for the fiscal full year.
On the books, cash and cash equivalents totaled $595 million, compared to $827 million at the end of the same period from the previous year.
Shares of Nordstrom closed Thursday up 0.9% at $52.72, with a consensus analyst price target of $55.48 and a 52-week trading range of $44.49 to $83.16. Following the release of the earnings report, the stock was down 6.2% at $49.45 in the after-hours trading session.
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
