Retail

Nordstrom Earnings Decent, Guidance Not So Good, Shares Hang In (JWN)

Nordstrom Inc. (NYSE: JWN) posted $0.92 EPS on revenues of $2.51 Billion.  First Call had targets set at $0.88 EPS on $2.53 Billion revenues.

For the first quarter of 2008, Nordstrom projected  same-store sales -3% to -5% and it put earnings per share in the range of $0.49 to $0.54.  Unfortunately, First Call has consensus of $0.59 EPS.  Here is the rest of the guidance:

  • Same-store Sales Flat To -2%;
  • Gross profit (%) 30 to 60 basis point Decrease;
  • Expenses are all rising with SG&A expense (%) 60 to 80 basis point increase, net interest expense $55 to $60 million increase, and finance charges and other net $50 to $60 million increase.
  • Effective tax rate 38.7%;
  • Fiscal Jan-2009 EPS $2.75 to $2.90 on diluted shares outstanding of 228 million; First Call has estimates at $2.98 EPS. 

When you look at the guidance of the coming quarter, this implies that you have to discount the coming quarter and trust that it makes up the difference at the end of the year.

Shares closed up 2.7% at $36.98 in regular trading, and shares have given back about 1% to $36.65 in after-hours trading.  The good news here is that even with all the negative trends in the guidance and even with having to trust the company more than many might like, shares are not reacting much worse.  Maybe Wall Street is learning to price in bad news after one-third of the price had been cut in the stock.

Jon C. Ogg
February 25, 2008

Are You Still Paying With a Debit Card?

The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.

Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!

Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!

 

Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.