JWN Preview: Stuck in the High-End Mud

Nordstrom (JWN - commentary - Cramer's Take) is expected to report first-quarter 2008 results and conduct its conference call after the market closes today.

The Street expects the company to earn 49 cents per share on net sales of $1.90 billion. In the year-ago quarter, Nordstrom earned 60 cents per share on net sales of $1.95 billion.

I considered the last quarter to be a mixed bag. Management guided lower for fiscal 2008 and discussed problems with the credit card portfolio. I suspect that the credit issues might have worsened this quarter. Furthermore, Nordstrom is losing the non-high-end shoppers, who were trading up to its stores. In this environment, shoppers are now trading down, but you could not infer that from the Macy's (M - commentary - Cramer's Take) or JCPenney (JCP - commentary - Cramer's Take) earnings results.

I concluded the last earnings coverage by saying that it was best to stay on the sidelines when it comes to Norton. Ever since that earnings report, the stock has traded in a relatively tight range of $33 to $38. It is going to take a huge upside surprise to make it break out of its trading range funk.

---

At the time of publication, Rothbort had no positions in the stocks mentioned, although positions can change at any time.

Scott Rothbort has over 20 years of experience in the financial services industry. In 2002, Rothbort founded LakeView Asset Management, LLC, a registered investment advisor based in Millburn, N.J., which offers customized individually managed separate accounts, including proprietary long/short strategies to its high net worth clientele. He also is the founder and manager of the social networking educational Web site TheFinanceProfessor.com.

Immediately prior to that, Rothbort worked at Merrill Lynch for 10 years, where he was instrumental in building the global equity derivative business and managed the global equity swap business from its inception. Rothbort previously held international assignments in Tokyo, Hong Kong and London while working for Morgan Stanley and County NatWest Securities.

Rothbort holds an MBA in finance and international business from the Stern School of Business of New York University and a BS in economics and accounting from the Wharton School of Business of the University of Pennsylvania. He is a Term Professor of Finance and the Chief Market Strategist for the Stillman School of Business of Seton Hall University.

For more information about Scott Rothbort and LakeView Asset Management, LLC, visit the company's Web site at www.lakeviewasset.com. Scott appreciates your feedback; click here to send him an email.