Nordstrom (JWN, $34.32) posts lower-than-expected Q1 earnings & sales, admits to missteps
Nordstrom missed estimates on first-quarter earnings and sales. The retail company also lowered its fiscal-year guidance, while admitting its missteps with customers.
The company's adjusted earnings for the quarter came in at 23 cents per share, falling heavily behind analysts’ expectations of 42 cents.
Sales of $3.4 billion also fell short of analysts’ estimates of $3.6 billion. They were also lower than the year-ago quarter’s $3.6 billion.
Co-president Erik Nordstrom said that the company had “executional misses” with its customers, and that it is taking steps to turn things around and improve customer services.
For the full fiscal year, Nordstrom revised down its earnings forecast to a range of $3.25 to $3.65 a share, compared to prior guidance of $3.65 to $3.90. Analysts were expecting earnings of $3.72 a share. The company also lowered outlook on net sales growth for the year to a range of -2% decrease to flat, versus previous expectations of a +1% to +2% increase.
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)
