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Nordstrom Soars On Earnings

Published 11/11/2016, 02:27 AM
Updated 05/14/2017, 06:45 AM

Clothing retailer Nordstrom (NYSE:JWN) late Thursday posted much better-than-expected third-quarter earnings and boosted its full-year outlook, sending shares soaring in after-hours trading.

The Seattle-based company reported Q3 EPS of $0.84, which easily beat Wall Street’s view of $0.52. Revenues rose 7.2% from last year to $3.47 billion, also topping estimates of $3.43 billion.

Comparable sales rose 2.4% in the latest period, which was in line with forecasts.

JWN noted that Women’s Apparel and Men’s Apparel were its top performing segments, with younger customer-focused departments in Women’s Apparel showing particular strength.

Looking ahead, the company forecast full-year 2017 EPS of $2.85-2.95, up significantly from a prior $2.60-2.75 and well ahead of Wall Street’s $2.74 estimate. JWN also forecast sales of $14.59 billion, which would also beat analysts’ view of $14.57 billion.

The company commented via press release:

We’ve made considerable changes in the way we operate to improve the customer experience while increasing our productivity,” said Blake Nordstrom, co-president, Nordstrom, Inc. “We are particularly proud of our team’s efforts to align inventories and improve our operating efficiencies. These outcomes have positively impacted our operating results.

Nordstrom shares rose $3.97 (+7.09%) to $60.00 in after-hours trading Thursday. Prior to today’s report, JWN had gained 11.2% year-to-date.

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