Nordstrom (NYSE:JWN) is a Seattle-based fashion retailer that provides apparels, shoes, beauty products, accessories, and home good for women, men, young adults, and children. Shares of Nordstrom were up 3.9% in early morning trading on May 31, 2024. The stock is now up 19% in the year-to-date period and 42% year over year. How did its recent earnings release impact its stock price? Let’s jump in.
The company released its first quarter (Q1) fiscal 2024 earnings on Thursday, May 30, 2024. In Q1 2024, Nordstrom reported that total company net sales increased 5.1% year-over-year and comparable sales delivered 3.8% growth. Nordstrom Rack banner net sales delivered 13.8% growth and comparable sales rose 7.9% compared to the same period in fiscal 2023.
Gross profit as a percentage of sales fell 225 basis points compared to Q1 FY2023. Meanwhile, ending inventory declined by 6.3% compared to a 5.1% increase in sales.
Going forward, Nordstrom is projecting a revenue range including retail sales and credit card revenues between a 2% decline to 1% growth. That includes a roughly 135 basis point unfavourable impact from the 53rd week in fiscal 2023. Meanwhile, it expects comparable sales in the range of a 1% decline to 2% growth and an EBIT margin between 3.5% to 4.0%. Moreover, it expects to see earnings per share between $1.65 to $2.05 for the full year.
Shares of Nordstrom currently possess a favourable price-to-earnings ratio of 11. It boasts a quarterly dividend of $0.19 per share, which represents a 3.5% yield.
Related Stories