Nordstrom (JWN, $37.95) beats Q3 expectations; raised full-year profit outlook

Nordstrom Inc. posted stronger-than-expected third quarter earnings, and also boosted its full-year profit guidance.

For the three months ending on November 2, earnings came in at 81 cents per share, surpassing the Street consensus expectation of 64 cents per share.

Total revenues of 3.672 billion exceeded analysts' estimates, although falling - 2% from the year-ago quarter.

Co-President Erik Nordstrom emphasized on the Off Price business’ positive sales growth and increased profitability through strong inventory and expense execution as some of the strengths in the quarter.

Digital sales rose +7% from the year-ago quarter; the segment  now accounts for more than a third of the company's total revenues. The growth helped to cushion a -4.1% decline in full price sales.

"We're encouraged by the momentum in our Full Price and Off Price businesses as we execute our holiday strategy to establish Nordstrom as a gifting destination for our customers", Nordstrom added.

For the full fiscal year 2020, the company  raised the lower end of its prior guidance by 5 cents to a range of $3.30 to $3.50 per share. It also increased its EBIT margin forecast by adding 10 basis points. But it re-iterated its forecast of a -2% decline in net sales.

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Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.