Nordstrom Earnings: Revenue Grows by Double Digits, Profit Falls Short

S&P 500 (NYSE:SPY) component Nordstrom Inc. (NYSE:JWN) reported its results for the first quarter. Nordstrom is a fashion retailer offering designer, luxury and quality apparel, shoes, cosmetics and accessories.

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Nordstrom Earnings Cheat Sheet for the First Quarter

Results: Net income for Nordstrom Inc. rose to $149 million (70 cents per share) vs. $145 million (65 cents per share) in the same quarter a year earlier. This marks a rise of 2.8% from the year-earlier quarter.

Revenue: Rose 13.2% to $2.63 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Nordstrom Inc. fell short of the mean analyst estimate of 75 cents per share. It beat the average revenue estimate of $2.51 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 12.4%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 13.6% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 1.7% and in the third quarter of the last fiscal year, the figure rose 6.7%.

Gross margin shrank 0.6 percentage point to 39.7%. The contraction appeared to be driven by increased costs, which rose 14.4% from the year earlier quarter while revenue rose 13.2%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the fourth quarter of the last fiscal year, it topped the mark by one cent, and in the third quarter of the last fiscal year, it was ahead by one cent.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 89 cents a share to 86 cents over the last ninety days. The average estimate for the fiscal year is $3.48 per share, down from $3.59 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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