NEW YORK (TheStreet) -- Shares of Nordstrom (JWN) are down 1.53% to $37.95 Tuesday afternoon as its price target was decreased to $41 from $54 and its "market perform" rating reiterated at BMO Capital Markets.
"Our comments follow Nordstrom's disappointing 1Q16 EPS (earnings per share) and further conversations with management," BMO analysts said in an investor note.
After last Thursday's market close, Nordstrom reported earnings of 26 cents per diluted share for the 2016 first quarter, missing BMO analysts' expectations of 47 cents per share. First quarter revenue rose 2.5% year-over-year to $3.2 billion, lower than estimates of $3.28 billion.
Comparable store sells fell 1.7% for the 2016 first quarter. Nordstrom, along with other retail giants, has seen a decline in store sales due to competition from Amazon.com (AMZN) and its online shopping platform.
"We expect the stock to remain at the low-end of the range until the company is able to: 1) restore comparable-store sales growth in the full-line stores, 2) re-accelerate comparable-store sales at Nordstrom Rack, 3) strike a better balance between full-price and promotional selling, 4) better align inventory with sales growth and 5) articulate how management plans to re-calibrate its growth plans," BMO analysts stated.
The Seattle-based company is a fashion specialty retailer, operating 115 Nordstrom-brand stores in the U.S., 167 off-price Nordstrom Rack stores and two full-line stores in Canada, among others.
Separately, TheStreet Ratings rated Nordstrom as a "hold" with a score of C.
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. TheStreet Ratings has this to say about the recommendation:
The primary factors that have impacted this 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 expanding profit margins. However, as a counter to these strengths, TheStreet Ratings also finds weaknesses including deteriorating net income, generally higher debt management risk and weak operating cash flow.
You can view the full analysis from the report here: JWN