Nordstrom Shares Dive After Poor Earnings but Solid Guidance

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Nordstrom  (JWN) - Get Report shares fell hard after the company issued a weak earnings report, but solid guidance.

The stock, which had already been down 13% for the year heading into earnings, fell 8.79% to $30 a share Tuesday.

The higher-end department store said earnings per share came in at $1.42 on an adjusted basis, missing Wall Street’s estimates of $1.47. Revenue was $4.54 billion, missing analysts estimates of $4.56 billion.

Guidance was better-than-expected.

Management is looking for total revenue growth for the full year of 2020 of between 1.5% and 2.5%, the mid point of which is better than analysts forecast of 1.8% revenue growth. The company thinks it can get to a full year operating margins of about 5.4%, better than Wall Street’s hopes for 5.3%.

Still, the stock fell. Nordstrom’s sales growth has been anemic in recent years, as it has lost retail market share to Amazon  (AMZN) - Get Report and the e-commerce revolution. Peers like Lulu Lemon  (LULU) - Get Report have far higher sales growth and margins, as they execute on changing customer trends and digital sales.

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