Nordstrom (NYSE:JWN) will release its quarterly earnings report on Tuesday, 2024-11-26. Here's a brief overview for investors ahead of the announcement.
Analysts anticipate Nordstrom to report an earnings per share (EPS) of $0.22.
Nordstrom bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Past Earnings Performance
The company's EPS beat by $0.25 in the last quarter, leading to a 4.21% increase in the share price on the following day.
Here's a look at Nordstrom's past performance and the resulting price change:
| Quarter | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|
| EPS Estimate | 0.71 | -0.07 | 0.88 | 0.12 |
| EPS Actual | 0.96 | -0.24 | 0.96 | 0.25 |
| Price Change % | 4.0% | 5.0% | -16.0% | -5.0% |
Market Performance of Nordstrom's Stock
Shares of Nordstrom were trading at $23.24 as of November 22. Over the last 52-week period, shares are up 51.5%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts' Perspectives on Nordstrom
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Nordstrom.
The consensus rating for Nordstrom is Neutral, derived from 9 analyst ratings. An average one-year price target of $22.44 implies a potential 3.44% downside.
Analyzing Ratings Among Peers
The following analysis focuses on the analyst ratings and average 1-year price targets of Ollie's Bargain Outlet, Kohl's and Savers Value Village, three prominent industry players, providing insights into their relative performance expectations and market positioning.
- As per analysts' assessments, Ollie's Bargain Outlet is favoring an Outperform trajectory, with an average 1-year price target of $106.12, suggesting a potential 356.63% upside.
- The prevailing sentiment among analysts is an Neutral trajectory for Kohl's, with an average 1-year price target of $21.0, implying a potential 9.64% downside.
- The consensus outlook from analysts is an Neutral trajectory for Savers Value Village, with an average 1-year price target of $10.0, indicating a potential 56.97% downside.
Insights: Peer Analysis
The peer analysis summary offers a detailed examination of key metrics for Ollie's Bargain Outlet, Kohl's and Savers Value Village, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Nordstrom | Neutral | 3.23% | $1.49B | 13.68% |
| Ollie's Bargain Outlet | Outperform | 12.41% | $219.03M | 3.14% |
| Kohl's | Neutral | -4.18% | $1.60B | 1.73% |
| Savers Value Village | Neutral | 0.53% | $224.02M | 5.09% |
Key Takeaway:
Nordstrom ranks in the middle for consensus rating among its peers. It is at the bottom for revenue growth. Nordstrom is at the top for gross profit. For return on equity, Nordstrom is in the middle compared to its peers.
Discovering Nordstrom: A Closer Look
Nordstrom is a fashion retailer that operates about 93 department stores and more than 260 off-price Nordstrom Rack stores. The company also operates both full- and off-price e-commerce sites, two clearance stores, and seven Local locations. Nordstrom's largest merchandise categories are women's apparel (27% of 2023 sales), shoes (26% of 2023 sales), men's apparel (15% of 2023 sales), and beauty (13% of 2023 sales). Nordstrom, which traces its history to a shoe store opened in Seattle in 1901, continues to be partially owned and managed by members of the eponymous family.
Nordstrom's Financial Performance
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Positive Revenue Trend: Examining Nordstrom's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.23% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: Nordstrom's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 3.13%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Nordstrom's ROE stands out, surpassing industry averages. With an impressive ROE of 13.68%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.43%, the company showcases effective utilization of assets.
Debt Management: With a high debt-to-equity ratio of 4.46, Nordstrom faces challenges in effectively managing its debt levels, indicating potential financial strain.
To track all earnings releases for Nordstrom visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
