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Nordstrom stock jumps on strong Q4 earnings

Department store chain Nordstrom (JWN) saw its shares jump over 5% during the extended trading on Thursday, after reporting better-than-expected fourth quarter earnings. The Seattle, Washington-based firm reported earnings of $1.48 per share helped by lower income tax expenses, which came in better than $1.42 per share projected by analysts.

Revenue for the quarter, meanwhile, rose 3 % to $4.48 billion, narrowly missing analysts’ estimate of $4.63 billion. Comp-store sales, one of the key metrics to watch, edged up 0.1%.

In Full-Price, comp sales rose 1.6%, primarily driven by softer traffic trends in full-line stores. Off-Price sales reflected continued momentum with comparable sales hike of 4%.

Looking ahead into the full year 2019, Nordstrom expects sales to grow in the range of 1-2%. Diluted EPS is expected between $3.65 and $3.90.

JWN stock has declined 7.8% in the trailing 52 weeks and is almost flat since the start of this year.

Earlier this week, rival Macy’s Inc (M) reported a 45% dip in earnings for the fourth quarter hurt by a lackluster holiday season. The quarterly results exceeded analysts’ expectations but the company guided full-year 2019 earnings below the consensus estimates.

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