Nordstrom Rises on Stellar Earnings and Guidance

By Chris Lange Updated Jan 12, 5:55PM EST · Published Nov 10, 4:20PM EST

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Nordstrom Rises on Stellar Earnings and Guidance — © Thinkstock

Nordstrom Inc. (NYSE: JWN) reported fiscal third-quarter financial results after markets closed on Thursday. The company posted $0.84 in earnings per share (EPS) and $3.5 billion in revenue versus consensus estimates from Thomson Reuters calling for $0.51 in EPS and $3.48 billion in revenue. The same period from last year had $0.57 in EPS and $3.33 billion in revenue.

Comparable sales increased 2.4%, compared with the same period last year. This includes a favorable comparison resulting from one week of the Anniversary Sale, historically the company’s largest event of the year, shifting into the third quarter. Combined second and third quarter comparable sales, which removes the impact of the event shift, increased 0.4% compared with the same period last year.

In terms of guidance for the 2016 full year, the company expects to have net sales increasing 3.5% and EPS in the range of $2.85 to $2.95. The consensus estimates are calling for $2.73 in EPS and $14.82 billion in revenue for the full year.

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On the books, cash and cash equivalents totaled $531 million at the end of the quarter, versus $821 million at the end of the same period from last year.

Blake Nordstrom, co-president, Nordstrom, commented:

We’ve made considerable changes in the way we operate to improve the customer experience while increasing our productivity. We are particularly proud of our team’s efforts to align inventories and improve our operating efficiencies. These outcomes have positively impacted our operating results.

Shares of Nordstrom closed Thursday up 7% at $56.03, with a consensus analyst price target of $49.38 and a 52-week trading range of $35.01 to $64.51. Following the release of the earnings report, the stock was up initially 6.7% at $59.79 in the after-hours trading session.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.