Nordstrom Inc. (NYSE: JWN | JWN Price Prediction) is scheduled to release its most recent quarterly results after the closing bell on Thursday. The consensus estimates are calling for $0.64 in earnings per share (EPS) and $3.67 billion in revenue. The fiscal third quarter of last year had $0.67 in EPS and $3.75 billion in revenue.
In its fiscal second quarter, Nordstrom’s bottom-line exceeded expectations but 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.
At the same time, 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 in the second quarter.
Overall, Nordstrom exited the second quarter in a favorable inventory position and made important strides in productivity. Management is now focused on driving the top-line, and while this can take time, the retailer seems to be confident in its ability to manage through cycles.
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Excluding Thursday’s move, Nordstrom had underperformed the broad markets, with its stock down about 27% year to date. In the past 52 weeks, the stock is down closer to 34%.
A few analysts weighed in on Nordstrom ahead of the results:
- Barclays has an Equal Weight rating and a $36 target.
- UBS has a Sell rating with a $30 price target.
- Wedbush rates it as Neutral with a $36 price target.
- Guggenheim has a Hold rating.
- Morgan Stanley’s Equal Weight rating comes with a $33 target.
Shares of Nordstrom traded up nearly 1% to $34.18 on Thursday, in a 52-week range of $25.01 to $54.65. The consensus price target is $34.35.
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