Nordstrom Inc. (NYSE: JWN) is scheduled to report its fiscal first-quarter financial results after the markets close on Thursday. Consensus estimates call for $0.46 in earnings per share (EPS) on $3.28 billion in revenue. In the same period of last year, the retailer posted EPS of $0.66 and $3.22 billion in revenue.
This top retailer has been hit hard and looks like a solid value play at current trading levels. Nordstrom is one of the leading fashion specialty retailers based in the United States. Founded in 1901 as a shoe store in Seattle, Nordstrom now operates some 260 stores in 35 states, including 117 full-line stores, 140 Nordstrom Racks, two Jeffrey boutiques and one clearance store.
In the fourth quarter, net sales increased 5.2% and comparable sales increased 1.0%, consistent with a comparable sales increase of 0.9% in the third quarter.
Back in February, Nordstrom raised its dividend by 10%. The company’s strong square footage growth profile and best in-class e-commerce business should drive solid dividend growth going forward.
A few analysts weighed in on Nordstrom before its earnings report:
- Wolfe Research downgraded it to Underperform from Market Perform.
- RBC Capital initiated coverage with a Sector Perform rating and a $51 price target.
- Evercore ISI downgraded the stock to Sell from Hold and lowered its price target to $40 from $50.
- JPMorgan reiterated a Hold rating.
So far in 2016, Nordstrom has underperformed the broad markets, with the stock down about 8%. Over the past 52 weeks, the stock is down 35%.
Shares of Nordstrom were trading at $44.97 Thursday morning, with a consensus analyst price target of $51.96 and a 52-week trading range of $44.49 to $80.23.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
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.