How Nordstrom Knocked It Out of the Park in Q2
Nordstrom reported better-than-expected quarterly results after the markets closed on Thursday, and shares rallied early Friday.
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When Nordstrom Inc. (NYSE: JWN) reported its most recent quarterly results after the markets closed on Thursday, the department store chain said that it had $0.95 in earnings per share (EPS) and $4.07 billion in revenue. Consensus estimates had called for $0.84 in EPS and revenue of $3.96 billion. The fiscal second-quarter of last year reportedly had EPS of $0.65 and $3.79 billion in revenue.
During the most recent quarter, sales from Nordstrom Rewards customers represented 58% of the quarterly sales, compared with 56% a year ago.
At the same time, comparable sales increased 4.0% in the second quarter. In Full-Price stores, comparable sales increased 4.1%, and in Off-Price stores comparable sales increased 4.0%.
So far in fiscal 2018, the company has opened eight stores, closed two and relocated one. This gives Nordstrom a total footprint of 372 stores.
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Looking ahead to the 2018 fiscal full year, the company expects to see EPS in the range of $3.50 to $3.65 and net sales between $15.4 billion and $15.5 billion, with comparable sales growing 1.5% to 2.0%. Consensus estimates call for $3.46 in EPS and $15.78 billion in revenue for the year.
During the six months ended August 4, Nordstrom repurchased 1.8 million shares of its common stock for $87 million. A total capacity of $327 million remains available under its existing share repurchase authorization.
Shares of Nordstrom closed Thursday at $52.28, with a consensus analyst price target of $53.00 and a 52-week trading range of $37.79 to $54.97. Following the announcement, the stock was up over 7% at $56.23 in early trading indications Friday.
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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.
