Why Nordstrom Earnings Failed to Please Analysts

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Nordstrom Inc. (NYSE: JWN), unlike a few of the other earnings reports and analyst calls we have recently reviewed, got the short end of the stick and investors were not pleased. The reactions from analysts across the board were not favorable, to say the least.

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.

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. Consensus estimates call for $3.37 in EPS on $14.43 billion in revenue for the full year.


A few analysts weighed in on Nordstrom after the release of the earnings report:

  • Deutsche Bank has a Buy rating and lowered its price target to $57 from $58.
  • JPMorgan has a Neutral rating and lowered its price target to $50 from $52.
  • Keybanc has an Overweight rating and lowered its price target from $65 to $60.
  • Merrill Lynch has an Underperform rating and cut its price objective to $42 from $45.
  • Nomura has a Neutral rating and lowered its price target to $55 from $62.
  • Topeka has a Buy rating and lowered its price target from $80 to $69.
  • Credit Suisse lowered its price target to $55 from $60.
  • Guggenheim has a Buy rating and lowered its price target to $57 from $64.
  • Sterne Agee CRT has a Neutral rating and lowered its price target to $49 from $55.

Shares of Nordstrom ended last week at $49.19, with a consensus analyst price target of $55.48 and a 52-week trading range of $44.49 to $83.16.