The apparel retailer reported earnings of 72 cents a share and revenue of $2.84 billion, which beat analysts' consensus estimates of 68 cents a share on revenue of $2.86 billion. The company also issued full-year guidance for EPS of $3.75 to $3.90, revenue growth of 5.5% to 7.5% and comparable-store sales growth of 2% to 4%. Analysts had expected full-year EPS of $3.85.
Nordstrom also announced its search for a financial partner for its Nordstrom credit card receivables, which total approximately $2 billion.
Several analysts took action on Nordstrom in the wake of the earnings report. Credit Suisse upgraded the stock to "outperform" from "neutral" and set a $78 price target. RBC Capital increased its price target to $75 from $67, while Buckingham increased its price target to $70 from $62.
The stock was up 12.02% to $68.88 at 11:35 a.m.
TheStreet Ratings team rates NORDSTROM INC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NORDSTROM INC (JWN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."