Nordstrom, Inc. (NYSE: JWN) released fiscal second-quarter financial results after markets closed Wednesday. The retailer said that it had $0.90 in earnings per share (EPS) and $3.87 billion in revenue, compared with consensus estimates that called for $0.75 in EPS and $3.93 billion in revenue. The same period from last year had $0.95 in EPS and $4.07 billion in revenue.
While Nordstrom’s bottom-line exceeded expectations, sales were around the low end of its expected range. This reflected a challenging start to the quarter as well as softer performance for the Anniversary Sale and Off-Price business. However, the company saw positive outcomes from the execution of its loyalty and digital marketing programs.
Full-Price net sales decreased 6.5% year over year, while Off-Price net sales decreased 1.9%. Total company digital sales grew 4% and represented 30% of the business.
Looking ahead to the 2019 fiscal full year, the company expects to see EPS in the range of $3.25 to $3.50 and net sales decreasing 2%. Consensus estimates are calling for $3.27 in EPS and $15.68 billion in revenue for the full year.
Erik Nordstrom, co-president, commented:
We delivered strong bottom-line results, demonstrating our inventory and expense discipline. We exited the quarter in a favorable inventory position and made important strides in productivity. We’re focused on driving our top-line, and while this can take time, we are confident in our ability to manage through cycles. We remain encouraged by our key initiatives, including our local market strategy, and are making good progress on key areas of focus that we believe will collectively drive increased value creation for our shareholders.
Shares of Nordstrom closed Wednesday at $26.51, with a 52-week range of $25.01 to $67.75. The consensus analyst price target is $34.00. Following the announcement, the stock was up 10% at $29.17 in the after-hours session.
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