Nordstrom Inc. Earnings: Revenue Strengthens Again by Double-Digits

S&P 500 (NYSE:SPY) component Nordstrom Inc. (NYSE:JWN) reported its results for the fourth 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 Fourth Quarter

Results: Net income for the apparel store rose to $236 million ($1.11 per share) vs. $232 million ($1.04 per share) in the same quarter a year earlier. This marks a rise of 1.7% from the year earlier quarter.

Revenue: Rose 12% to $3.2 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Nordstrom Inc. was about in line with expectations as the mean analyst estimate of $1.10 per share. It beat the average revenue estimate of $3.18 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 11.8%, with the biggest boost coming in the third quarter when revenue rose 13.6% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 6.7% and in the second quarter, the figure rose 19.9%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the third quarter, by 7 cents in the second quarter, and by 2 cents in the first quarter.

Gross margin shrank 0.1 percentage point to 39.6%. The contraction appeared to be driven by increased costs, which rose 12.2% from the year earlier quarter while revenue rose 12%.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 75 cents a share to 74 cents over the last sixty days. At $3.13 per share, the average estimate for the fiscal year has risen from $3.11 sixty days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com