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.
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 5.2B. 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 3%, and the average quarterly price growth was 8%. M experienced the highest price growth at 10%, while CBDBY experienced the biggest fall at -18%.
Volume
The average weekly volume growth across all stocks in the Department Stores Industry was -5%. For the same stocks of the Industry, the average monthly volume growth was -11% and the average quarterly volume growth was 325%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 32
P/E Growth Rating: 53
Price Growth Rating: 57
SMR Rating: 79
Profit Risk Rating: 71
Seasonality Score: 18 (-100 ... +100)
