Nordstrom Sinks Despite Beating Earnings

By Chris Lange Updated Jan 12, 12:05PM EST · Published May 11, 4:28PM EDT

Nordstrom Sinks Despite Beating Earnings — © Thinkstock

[cnxvideo id=”655413″ placement=”ros”]Nordstrom, Inc. (NYSE: JWN) reported fiscal first-quarter financial results after markets closed Thursday. The company reported $0.43 in earnings per share (EPS) and $3.3 billion in revenue versus consensus estimates from Thomson Reuters that called for $0.27 in EPS and $3.34 billion in revenue. The same period from last year had $0.26 in EPS and $3.25 billion in revenue.

Total net sales increased 2.7% and comparable sales decreased 0.8%, compared with last year. This was consistent with trends experienced over the past year. Online sales made up 24% of total net sales, driven by 11% growth at Nordstrom.com and 19% at Nordstromrack.com/HauteLook.

In the Nordstrom brand, including U.S. and Canada full-line stores and Nordstrom.com, net sales when combined with Trunk Club, decreased 1.7% and comparable sales decreased 2.8%.

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In the Nordstrom Rack brand, which consists of Nordstrom Rack stores and Nordstromrack.com/HauteLook, net sales increased 8.7% and comparable sales increased 2.3%.

Through the partnership with TD Bank, credit card revenues increased 17% during this quarter.

In the quarter, Nordstrom repurchased 4.6 million shares of its common stock for $206 million. A total capacity of $414 million remains available under its existing share repurchase board authorization.

In terms of its outlook, Nordstrom expects to see EPS in the range of $2.75 to $3.00 and net sales increase by 3% to 4% with flat comparable sales. The consensus estimates are calling for $2.92 in EPS and $15.27 billion in revenue.

On the books, cash and cash equivalents totaled $653 million at the end of the quarter, versus $470 million in the same period from last year.

Shares of Nordstrom closed Thursday down 7.6% at $46.23, with a consensus analyst price target of $47.04 and a 52-week trading range of $35.01 to $62.82. Following the release of the earnings report, the stock was initially down about 5% at $43.97 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.