Nordstrom Inc. (NYSE: JWN) shares pulled back on Tuesday after the department store chain announced its sales projections for the next five years. Ultimately its targets were not up to par with what Wall Street had in mind.
From 2017 to 2022, the company is projecting earnings before interest and taxes to grow in the range of 5% to 6% on an average annualized basis, while sales are expected to grow between 3% and 4%. At the same time, apparel and footwear sales are projected to grow at a slower 1% pace on average, annually.
According to CNBC:
Nordstrom, like its rivals, is fighting to maintain growth as it faces new competition from trendy e-commerce brands and slowing foot traffic at malls. In order to keep pace, traditional retailers must invest in new technology and test out new business models.
Looking ahead to fiscal 2018, the company reaffirmed its prior outlook. Nordstrom expects net sales to be in a range of $15.2 billion to $15.4 billion, while same-store sales are forecast to rise as much as 1.5% overall. Earnings per share (EPS) are forecast to be in a range of $3.35 to $3.55, excluding the impact of any future share repurchases.
However, this was not enough. Consensus estimates are calling for $3.47 in EPS and $15.78 billion in revenue for the current fiscal year. And for fiscal 2019, analysts expect EPS of $3.59 and revenue of $16.2 billion.
Shares of Nordstrom were last seen down more than 5% at $50.69, with a consensus analyst price target of $52.44 and a 52-week range of $37.79 to $54.11.
24/7 Wall St.100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
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.