Nordstrom Underwhelms With Earnings and Weak Comparable Sales

By Chris Lange Updated Jan 13, 1:00PM EST · Published Feb 18, 4:39PM EST

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Nordstrom Underwhelms With Earnings and Weak Comparable Sales — © Thinkstock

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%.
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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.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.