Nordstrom (JWN, $34.18) forecasts a weaker-than-expected sales growth guidance for fiscal 2021

Nordstrom  issued a weaker-than-expected sales growth guidance for fiscal 2021.

The luxury department store chain projects a revenue growth of +25%, compared to the Refinitiv analyst consensus of +26.6%.  

According to Nordstrom’s estimates, digital sales would account for  50% of its revenue. It predicts EBIT will be positive and the leverage ratio will be about 3 times by year-end.

Over the long term, Nordstrom projects revenue growth of low single-digits annually from 2019 levels. It expects operating income to grow faster than revenue, and predicts EBIT margin as a percentage of sales to exceed 6%.

It expects return on invested capital to be in the low teens, annual operating cash flow to exceed $1 billion, annual capex i to be 3% to 4% of sales, and the leverage ratio to return to about 2.5 times or below by the end of 2022.