
Nordstrom (JWN) Stock Plunging on Q1 Earnings Miss
NEW YORK (TheStreet) -- Shares of Nordstrom (JWN) - Get Report are down by 14.12% to $38.82 in pre-market trading on Friday morning, after the retail giant issued weaker than expected 2016 first quarter financial results.
The company posted earnings of 26 cents per diluted share, well below the 45 cents per share analysts had been expecting.
Revenue for the period grew by 2.5% to $3.2 billion from the same period in 2015. Analysts had been looking for revenue of $3.28 billion for the three month period ended April 30.
Comparable store sales for the first quarter fell by 1.7%.
Looking ahead to the full year, Nordstrom is anticipating that 2016 sales will grow by 2.5% to 4.5%, compared to its previous guidance of a 3.5% to 5.5% growth. Comparable sales are expected to range from a decrease of 1% to an increase of 1%, previously the company guided for flat comparable sales to a 2% rise.
Nordstrom is the latest in a string of retail companies to post results below expectations.
Separately, TheStreet Ratings has set a "hold" rating and a score of C+ on Nordstrom stock. The primary factors that have impacted the rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including deteriorating net income, generally higher debt management risk and a generally disappointing performance in the stock itself.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: JWN










