Nordstrom, Inc. (NYSE:JWN) Surpasses Earnings Expectations
- Earnings Per Share (EPS) of $0.28 exceeded the estimated $0.22, showcasing Nordstrom's ability to surpass market expectations.
- Despite a revenue shortfall, Nordstrom reported a 4.3% year-over-year increase, with figures reaching approximately $3.46 billion.
- The company's focus on popular brands and operational efficiency contributes to its steady gross profit margin, despite the challenges in managing operational expenses.
Nordstrom, Inc. (NYSE:JWN) is a prominent fashion retailer known for its high-end department stores. Founded in 1901, the company offers a wide range of apparel, shoes, cosmetics, and accessories. It operates under the Nordstrom and Nordstrom Rack banners across the U.S. Despite challenges in the retail sector, Nordstrom continues to perform well, as evidenced by its recent financial results.
On November 26, 2024, Nordstrom reported earnings per share (EPS) of $0.28, surpassing the estimated $0.22. This impressive performance highlights the company's ability to exceed market expectations. This indicates strong profitability and effective cost management.
Nordstrom generated a revenue of approximately $3.46 billion, which was below the estimated $4.27 billion. However, this figure still marks a 4.3% increase compared to the same period last year. The revenue exceeded the Zacks Consensus Estimate of $3.33 billion, resulting in a positive surprise of 3.99%. This growth reflects Nordstrom's ability to attract consumers despite industry challenges.
The company's success is partly driven by increased consumer interest in popular brands like On Running, Hoka, and Vuori, available at its stores. Nordstrom's ability to maintain a steady gross profit margin, despite rising costs, further underscores its operational efficiency. However, managing operational expenses remains a concern for the company.
Nordstrom's financial metrics provide additional insights into its market position. With a price-to-earnings (P/E) ratio of approximately 11.47 and a price-to-sales ratio of about 0.27, the market values its earnings and sales relatively low. The enterprise value to sales ratio is around 0.35, and the enterprise value to operating cash flow ratio is approximately 6.03, indicating how the market values its cash flow generation. The company's debt-to-equity ratio is approximately 1.72, highlighting its financial leverage, while a current ratio of about 1.14 suggests its ability to cover short-term liabilities.
| Symbol | Price | %chg |
|---|---|---|
| MAPI.JK | 1180 | -1.27 |
| FALABELLA.SN | 5597 | 0.43 |
| CENCOSUD.SN | 2669.9 | 0.88 |
| LPPF.JK | 1625 | 0.62 |
Citi Cuts Nordstrom to Sell: Limited Upside, Major Downside Risk Amid Deal Uncertainty
Citi downgraded Nordstrom (NYSE:JWN) from Neutral to Sell, citing an unfavorable risk/reward balance as shares hover near a potential buyout price but face sharp downside if the deal unravels. The firm also trimmed its price target to $22, down from $25.
The downgrade stems from concerns around investor complacency amid a pending acquisition bid by the Nordstrom family and Liverpool, priced at $24.25 per share. Shares recently traded just below that level at $23.96, suggesting the market is largely pricing in the deal's completion. However, Citi warns that the transaction is not guaranteed, and no higher bid is expected—especially in light of broader retail headwinds and increased tariff risks.
Citi notes that while many department store and specialty retail stocks saw steep selloffs—Kohl’s dropped 22%, Macy’s fell 14%—following the Liberation Day tariff announcement, Nordstrom only dipped 2%, likely cushioned by the buyout speculation.
But if the proposed deal fails to close, Citi sees up to 30% downside, making the current setup heavily skewed against investors. With just 1% upside if the acquisition goes through at the stated price, the firm believes the risk outweighs the potential reward, justifying its bearish stance.
Citi Cuts Nordstrom to Sell: Limited Upside, Major Downside Risk Amid Deal Uncertainty
Citi downgraded Nordstrom (NYSE:JWN) from Neutral to Sell, citing an unfavorable risk/reward balance as shares hover near a potential buyout price but face sharp downside if the deal unravels. The firm also trimmed its price target to $22, down from $25.
The downgrade stems from concerns around investor complacency amid a pending acquisition bid by the Nordstrom family and Liverpool, priced at $24.25 per share. Shares recently traded just below that level at $23.96, suggesting the market is largely pricing in the deal's completion. However, Citi warns that the transaction is not guaranteed, and no higher bid is expected—especially in light of broader retail headwinds and increased tariff risks.
Citi notes that while many department store and specialty retail stocks saw steep selloffs—Kohl’s dropped 22%, Macy’s fell 14%—following the Liberation Day tariff announcement, Nordstrom only dipped 2%, likely cushioned by the buyout speculation.
But if the proposed deal fails to close, Citi sees up to 30% downside, making the current setup heavily skewed against investors. With just 1% upside if the acquisition goes through at the stated price, the firm believes the risk outweighs the potential reward, justifying its bearish stance.
Nordstrom, Inc. (NYSE:JWN) Quarterly Earnings Preview
- Wall Street analysts predict an earnings per share (EPS) of $0.90, a 6.3% decline from the previous year.
- Revenue projections stand at approximately $4.29 billion, marking a 2.9% decrease year-over-year.
- The company's P/E ratio is 11.32 and its price-to-sales ratio is 0.27, indicating modest market valuation.
Nordstrom, Inc. (NYSE:JWN) is a leading fashion retailer known for its high-quality apparel, shoes, and accessories. The company operates through various channels, including full-line stores, Nordstrom Rack, and an online platform. As a key player in the retail industry, Nordstrom competes with other major retailers like Macy's and Saks Fifth Avenue.
On March 4, 2025, Nordstrom is set to release its quarterly earnings. Wall Street analysts predict an earnings per share (EPS) of $0.90, marking a 6.3% decline from the previous year. This decline reflects the challenges Nordstrom faces in maintaining profitability amidst changing consumer preferences and economic conditions.
Revenue projections for Nordstrom's upcoming report are approximately $4.29 billion, a 2.9% decrease year-over-year. This decline in revenue highlights the competitive pressures in the retail sector and the impact of external factors on consumer spending. Despite these challenges, Nordstrom's ability to meet or exceed these estimates will be crucial for its stock performance.
The consensus EPS estimate for the quarter has been revised downwards by 9.6% over the past 30 days, as highlighted by analysts. Such revisions often influence investor sentiment and can lead to short-term stock price fluctuations. If Nordstrom surpasses these expectations, it could result in a positive stock price movement.
Nordstrom's financial metrics provide insight into its market valuation and financial health. With a P/E ratio of 11.32 and a price-to-sales ratio of 0.27, the market values Nordstrom's earnings and sales relatively modestly. The company's debt-to-equity ratio of 1.72 indicates a reliance on debt financing, while a current ratio of 1.14 suggests a stable short-term financial position.
Nordstrom, Inc. (NYSE:JWN) Quarterly Earnings Preview
- Wall Street analysts predict an earnings per share (EPS) of $0.90, a 6.3% decline from the previous year.
- Revenue projections stand at approximately $4.29 billion, marking a 2.9% decrease year-over-year.
- The company's P/E ratio is 11.32 and its price-to-sales ratio is 0.27, indicating modest market valuation.
Nordstrom, Inc. (NYSE:JWN) is a leading fashion retailer known for its high-quality apparel, shoes, and accessories. The company operates through various channels, including full-line stores, Nordstrom Rack, and an online platform. As a key player in the retail industry, Nordstrom competes with other major retailers like Macy's and Saks Fifth Avenue.
On March 4, 2025, Nordstrom is set to release its quarterly earnings. Wall Street analysts predict an earnings per share (EPS) of $0.90, marking a 6.3% decline from the previous year. This decline reflects the challenges Nordstrom faces in maintaining profitability amidst changing consumer preferences and economic conditions.
Revenue projections for Nordstrom's upcoming report are approximately $4.29 billion, a 2.9% decrease year-over-year. This decline in revenue highlights the competitive pressures in the retail sector and the impact of external factors on consumer spending. Despite these challenges, Nordstrom's ability to meet or exceed these estimates will be crucial for its stock performance.
The consensus EPS estimate for the quarter has been revised downwards by 9.6% over the past 30 days, as highlighted by analysts. Such revisions often influence investor sentiment and can lead to short-term stock price fluctuations. If Nordstrom surpasses these expectations, it could result in a positive stock price movement.
Nordstrom's financial metrics provide insight into its market valuation and financial health. With a P/E ratio of 11.32 and a price-to-sales ratio of 0.27, the market values Nordstrom's earnings and sales relatively modestly. The company's debt-to-equity ratio of 1.72 indicates a reliance on debt financing, while a current ratio of 1.14 suggests a stable short-term financial position.
Nordstrom Surpasses Q3 Expectations, Raises Full-Year Guidance
Nordstrom (NYSE:JWN) reported third-quarter results that exceeded expectations, supported by solid sales growth across both its Nordstrom and Nordstrom Rack divisions. The company also raised its full-year guidance.
The luxury retailer posted adjusted earnings per share of $0.33, beating the Street consensus estimate of $0.22. Revenue reached $3.35 billion, slightly ahead of the $3.33 billion forecasted by analysts and reflecting a 4.6% year-over-year increase. Comparable sales rose 4.0%, with the Nordstrom banner recording a 1.3% net sales increase and a 4.0% boost in comparable sales. Meanwhile, Nordstrom Rack saw net sales surge 10.6%, with comparable sales up 3.9%.
Gross profit margin improved to 35.6%, a 60-basis-point increase year-over-year, driven by strong regular price sales. Digital sales also performed well, rising 6.4% and accounting for 34% of total sales in the quarter.
Building on this strong performance, Nordstrom raised its fiscal 2024 outlook. The company now expects adjusted earnings per share in the range of $1.75 to $2.05, compared to the prior consensus of $1.90. Full-year revenue is anticipated to be flat to up 1.0% compared to fiscal 2023.
Nordstrom Surpasses Q3 Expectations, Raises Full-Year Guidance
Nordstrom (NYSE:JWN) reported third-quarter results that exceeded expectations, supported by solid sales growth across both its Nordstrom and Nordstrom Rack divisions. The company also raised its full-year guidance.
The luxury retailer posted adjusted earnings per share of $0.33, beating the Street consensus estimate of $0.22. Revenue reached $3.35 billion, slightly ahead of the $3.33 billion forecasted by analysts and reflecting a 4.6% year-over-year increase. Comparable sales rose 4.0%, with the Nordstrom banner recording a 1.3% net sales increase and a 4.0% boost in comparable sales. Meanwhile, Nordstrom Rack saw net sales surge 10.6%, with comparable sales up 3.9%.
Gross profit margin improved to 35.6%, a 60-basis-point increase year-over-year, driven by strong regular price sales. Digital sales also performed well, rising 6.4% and accounting for 34% of total sales in the quarter.
Building on this strong performance, Nordstrom raised its fiscal 2024 outlook. The company now expects adjusted earnings per share in the range of $1.75 to $2.05, compared to the prior consensus of $1.90. Full-year revenue is anticipated to be flat to up 1.0% compared to fiscal 2023.
