Nordstrom (JWN, $17.50) slashes full-year profit forecast
Nordstrom shares fell on Friday, after the retail company lowered its full-year profit outlook.
Nordstrom is now expecting its earnings for its fiscal 2022 year (ending February) to come in the range of $1.50 to $1.70 per share, well below its prior forecast of $2.13 to $2.43 per share. Holiday sales fell to below prepandemic levels. Sales for the nine weeks ending on December 31 slipped -3.5% from last year, with its discount Nordstrom Rack division undergoing a -7.6% decrease.
The company projects full year sales growth at the lower end of its previous forecast of between 5% and 7%.
"The holiday season was highly promotional, and sales were softer than prepandemic levels. While we continue to see greater resilience in our higher income cohorts, it is clear that consumers are being more selective with their spending given the broader macro environment," mentioned CEO Erik Nordstrom. "Still, our team executed well, and we enter 2023 in a stronger position as we prioritized starting the new fiscal year with clean inventory levels, even if this required more markdowns than planned."
Notable companies
The most notable companies in this group are Nordstrom (null:JWN), Macy's (NYSE:M), Kohls Corp (NYSE:KSS).
Industry description
A department store sells a wide variety of consumer goods under different “departments,” including (but not necessarily limited to) apparel, household appliances, home furnishings, personal care products, cosmetics, consumer electronics. During healthy macroeconomic conditions, consumers typically won’t shy away from big-ticket purchases; but during a downturn, consumer spending might get limited to the most necessary/daily essentials. Several department stores purchase items on bulk from manufacturers for resale to consumers at a profit. Some of the largest department stores companies in the U.S. include Kohl’s Corporation, Macy’s Inc., and Ollie’s Bargain Outlet Holdings Inc.
Market Cap
The average market capitalization across the Department Stores Industry is 5.16B. The market cap for tickers in the group ranges from 208.1K to 12.34T. MHRTF holds the highest valuation in this group at 12.34T. The lowest valued company is BONT at 208.1K.
High and low price notable news
The average weekly price growth across all stocks in the Department Stores Industry was -1%. For the same Industry, the average monthly price growth was 4%, and the average quarterly price growth was 4%. KSS experienced the highest price growth at 1%, while WLWHY experienced the biggest fall at -9%.
Volume
The average weekly volume growth across all stocks in the Department Stores Industry was 3%. For the same stocks of the Industry, the average monthly volume growth was 1% and the average quarterly volume growth was 47%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 33
P/E Growth Rating: 52
Price Growth Rating: 57
SMR Rating: 79
Profit Risk Rating: 71
Seasonality Score: -5 (-100 ... +100)
