Nordstrom (JWN, $58.99) Takes a $72 Million Charge on Customer Refunds, Misses Earnings Estimates; But Beats Sales Expectations
Nordstrom, Inc. admits that it erroneously overcharged some of its customers on their credit cards, and is refunding them. The news sent its shares down -11% in after-market trading on Thursday.
The luxury department store chain revealed on Thursday that it will refund $72 million to customers who were incorrectly charged higher interest rates on store credit cards that were delinquent. “We sincerely apologize to these cardholders. We realize customers and shareholders place a great deal of trust in us, and that’s a responsibility we take seriously,” Nordstrom said on a conference call with analysts.
Nordstrom’s compensation to customers subtracted 29 cents from its earnings per share for the latest reported quarter. During the 3 months ending November 3, Nordstrom’s earnings came in at $67 million ( 39 cents a share), plunging -42% from $114 million (67 cents a share) of the year-ago period. Analysts had expected Nordstrom to earn 66 cents a share.
Revenue, however, increased +3% to $3.75 billion from a year ago, and beat estimate of $3.69 billion. The company registered a +2.3% growth in sales at stores open for at least a year, exceeding Wall Street expectations of a +2.2% increase.
JWN in +0.33% Uptrend, rising for three consecutive days on May 20, 2025
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where JWN advanced for three days, in of 316 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Aroon Indicator entered an Uptrend today. In of 225 cases where JWN Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.618) is normal, around the industry mean (2.398). P/E Ratio (14.172) is within average values for comparable stocks, (30.718). JWN's Projected Growth (PEG Ratio) (0.312) is slightly lower than the industry average of (1.151). Dividend Yield (0.031) settles around the average of (0.037) among similar stocks. P/S Ratio (0.277) is also within normal values, averaging (0.607).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. JWN’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. JWN’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a retailer of apparel, shoes, cosmetics and accessories
Industry DepartmentStores
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