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Wednesday, August 21, 2019

-=Nordstrom (JWN) reported earnings on Wed 21 Aug 2019 (a/h)



Nordstrom beats by $0.13, misses on revs; lowers high end of FY20 EPS, sees sales at low end of range
  • Reports Q2 (Jul) earnings of $0.90 per share, $0.13 better than the S&P Capital IQ Consensus of $0.77; revenues fell 4.8% year/year to $3.87 bln vs the $3.92 bln S&P Capital IQ Consensus. The Company's earnings beat expectations, resulting from strong inventory discipline as well as significant expense efficiencies across the Company. Inventory was down 6.5% over last year, positioning the Company well to re-balance its merchandise assortment with customer demand.
  • While the Company's bottom-line exceeded expectations, sales -5.1% were around the low end of its expected range.
  • In Full-Price, net sales decreased 6.5% compared with the same period in fiscal 2018. Off-Price net sales decreased 1.9 percent. Total company digital sales grew 4% and represented 30% of the business.
  • This reflected a challenging start to the quarter as well as softer performance for the Anniversary Sale and Off-Price business. However, Nordstrom saw positive outcomes from the execution of its loyalty and digital marketing programs. The Company is taking advantage of its strong inventory position to increase depth in key items and improve in-stock levels, applying learnings from its Anniversary Sale. The Off-Price business is amplifying its marketing efforts and making strategic inventory investments to fuel growth in the second half of the year. 
  • Gross profit, as a percentage of net sales, of 34.5 percent decreased 50 basis points compared with the same period in fiscal 2018.
  • Co issues in-line guidance for FY20, lowers EPS to $3.25-3.50, excluding non-recurring items, from $3.25-3.65 vs. $3.27 S&P Capital IQ Consensus, EBIT to $805-855 mln from $805-890 mln; lowers net sales to -2% from down 0-2%.

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