What to Watch For in Nordstrom’s Q3

November 15, 2018 by Chris Lange

Nordstrom Inc. (NYSE: JWN) is set to release its most recent quarterly results after the markets close on Thursday. Consensus estimates are calling for $0.66 in earnings per share (EPS) and $3.69 billion in revenue. The fiscal third quarter of last year had $0.67 in EPS and $3.63 billion in revenue.

During the most recent quarter, sales from Nordstrom Rewards customers represented 58% of the quarterly sales, compared with 56% in the same period from last year.

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%.

Thus far in fiscal 2018, the company had opened eight stores, closed two and relocated one. This gave Nordstrom a total footprint of 372 stores.

The company issued guidance at that time for the 2018 fiscal full year. Nordstrom expected 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 called for $3.60 in EPS and $15.91 billion in revenue for the year.

Excluding Thursday’s move, Nordstrom has outperformed the broad markets, with the stock up about 56% in the past 52 weeks. In just 2018 alone, the stock is up 29%.

A few analysts weighed in on Nordstrom ahead of the report:

  • Morgan Stanley has an Underweight rating with a $50 price target.
  • Telsey Advisory Group has an Outperform rating and a $72 price target.
  • Goldman Sachs has a Sell rating.
  • Cowen has a Hold rating with a $56 price target.
  • Credit Suisse has a Neutral rating with a $55 target.

Shares of Nordstrom were last seen down about 3% at $59.17, in a 52-week range of $39.03 to $67.75. The consensus analyst price target is $61.17.

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.