Nordstrom Earnings: Profit Falls, Snapping Streak of Rising Profits
S&P 500 (NYSE:SPY) component Nordstrom Inc. (NYSE:JWN) reported its results for the second quarter. Nordstrom is a fashion retailer offering designer, luxury and quality apparel, shoes, cosmetics and accessories.
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Nordstrom Inc. Earnings Cheat Sheet
Results: Net income for Nordstrom Inc. fell to $156 million (75 cents per share) vs. $175 million (80 cents per share) a year earlier. This is a decline of 10.9% from the year-earlier quarter.
Revenue: Rose 7.1% to $3.01 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Nordstrom Inc. beat the mean analyst estimate of 73 cents per share. It beat the average revenue estimate of $2.51 billion.
Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the first quarter, net income rose 2.8% from the year earlier, while the figure increased 1.7% in the fourth quarter of the last fiscal year, 6.7% in the third quarter of the last fiscal year and 19.9% in the second quarter of the last fiscal year.
Revenue has risen for the last four quarters. Revenue increased 13.2% to $2.63 billion in the first quarter. The figure rose 12% in the fourth quarter of the last fiscal year from the year earlier and climbed 13.6% in the third quarter of the last fiscal year from the year-ago quarter.
The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 70 cents versus a mean estimate of net income of 75 cents per share.
Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the third quarter has moved up from 63 cents a share to 71 cents over the last sixty days. The average estimate for the fiscal year is $3.42 per share, down from $3.59 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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