Retail

What to Expect From Nordstrom Earnings

Chris Lange

Published: May 12, 2016 10:10 am

Last Updated: January 13, 2020 9:30 am

Nordstrom Inc. (NYSE: JWN) is scheduled to report its fiscal first-quarter financial results after the markets close on Thursday. Consensus estimates call for $0.46 in earnings per share (EPS) on $3.28 billion in revenue. In the same period of last year, the retailer posted EPS of $0.66 and $3.22 billion in revenue.

This top retailer has been hit hard and looks like a solid value play at current trading levels. Nordstrom is one of the leading fashion specialty retailers based in the United States. Founded in 1901 as a shoe store in Seattle, Nordstrom now operates some 260 stores in 35 states, including 117 full-line stores, 140 Nordstrom Racks, two Jeffrey boutiques and one clearance store.

In the 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.

Back in February, Nordstrom raised its dividend by 10%. The company’s strong square footage growth profile and best in-class e-commerce business should drive solid dividend growth going forward.

A few analysts weighed in on Nordstrom before its earnings report:

• Wolfe Research downgraded it to Underperform from Market Perform.
• RBC Capital initiated coverage with a Sector Perform rating and a $51 price target.
• Evercore ISI downgraded the stock to Sell from Hold and lowered its price target to $40 from $50.
• JPMorgan reiterated a Hold rating.

So far in 2016, Nordstrom has underperformed the broad markets, with the stock down about 8%. Over the past 52 weeks, the stock is down 35%.

Shares of Nordstrom were trading at $44.97 Thursday morning, with a consensus analyst price target of $51.96 and a 52-week trading range of $44.49 to $80.23.