What to Expect When Nordstrom (JWN) Reports Earnings Thursday Afternoon

NEW YORK (TheStreet) -- Shares of Nordstrom Inc  (JWN) are down 1.98% to $74.66 in late morning trading Thursday, ahead of the retailer's first quarter fiscal 2015 earnings release after the market closes later today.

The upscale department store chain is expected to earn 71 cents per share on revenue of $3.16 billion for the quarter, according to analysts polled by Thomson Reuters.

In the same period of last year, Nordstrom reported earnings of 72 cents per share on sales of $2.93 billion.

Last quarter, sales at Rack stores outgrew full-line stores, and Nordstrom.com posted a sales growth of 19%. Fourth quarter sales at Nordstromrack.com/HauteLook rose by 28%, according to Yahoo! Finance.

Seattle, Wash.-based Nordstrom is a fashion specialty retailer offering designer, luxury and quality apparel, shoes, cosmetics and accessories.

The company operates 262 stores in 35 states nationwide, as well as its e-commerce business through Nordstrom.com and HauteLook.

Separately, 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, solid stock price performance, expanding profit margins, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • JWN's revenue growth has slightly outpaced the industry average of 2.1%. Since the same quarter one year prior, revenues slightly increased by 8.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, JWN's share price has jumped by 26.55%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, JWN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • NORDSTROM INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, NORDSTROM INC's EPS of $3.72 remained unchanged from the prior years' EPS of $3.72. This year, the market expects an improvement in earnings ($3.78 versus $3.72).
  • 41.58% is the gross profit margin for NORDSTROM INC which we consider to be strong. Regardless of JWN's high profit margin, it has managed to decrease from the same period last year.
  • Net operating cash flow has increased to $704.00 million or 16.94% when compared to the same quarter last year. Despite an increase in cash flow, NORDSTROM INC's average is still marginally south of the industry average growth rate of 26.02%.
  • You can view the full analysis from the report here: JWN Ratings Report

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