Shares of the fashion specialty retailer Nordstrom (JWN) slipped on Tuesday after the company rolled out sales projection for 2018 that fell below the consensus estimate. During the investor day held on July 10, Nordstrom reaffirmed its prior outlook for 2018. The retailer expects sales to fall between $15.2 billion and $15.4 billion. This is much lower than the consensus estimate of $15.8 billion. The company projects its comparable sales to grow between 0.5% and 1.5% and EPS is expected to be in the range of $3.35-3.55. The consensus estimate sees EPS of $3.47.
The Seattle-based retailer even announced its sales projection for the long term. In the next five years — 2017 to 2022 — the company expects sales to grow between 3% and 4% and growth in earnings before interest and taxes (EBIT) is expected to be 5-6%.
Nordstrom, that attempted to go private early in the year, has a much smaller footprint when compared to other retailers. Still, it will have to face the same pressure as other retailers like Macy’s (M), Target (TGT) and J.C. Penney (JCP) in a challenging retail environment.
Related: Nordstrom turns down buyout bid from founding family
Nordstrom is trying to get ahead in the race by investing in digital technology. The department stores chain recently acquired two retail technology companies; BevyUp and MessageYes. The retailer is also expanding its brand partnership by entering into new deals and by opening its first full-line flagship in New York City. This year, the company’s off-price division opened its first rack store in Canada.
To fix the customer’s shift to online shopping, Nordstrom on Monday said, it plans to focus on a different and new concept like onsite tailoring. The Seattle, Washington-based company said it is expanding small-store model where it plans to combine several initiatives. These stores will not have clothes for sale rather it will attract customers with merchandise that they can try. Shoppers can reach out to style experts to get a customized look for their clothes. Shoppers can order merchandise online to be delivered the same day.
On Tuesday, the company’s shares traded down at 2.67% to $52.09 and continued to trade in the negative territory before the bell today.
Nordstrom Q1 results (click to enlarge)
Most Popular
Earnings Preview: Home Depot’s Q3 report likely to reflect weak consumer demand
The US housing industry has been mostly resilient to headwinds like economic uncertainties so far this year. However, housing activity cooled in recent months as high mortgage rates and inflation
Take-Two Interactive (TTWO) will report Q2 2025 earnings this week, a few points to note
Shares of Take-Two Interactive Software, Inc. (NASDAQ: TTWO) stayed red on Monday. The stock has gained 16% over the past three months. The gaming company is set to report its second
Earnings Summary: Highlights of Loews Corporation’s (L) Q3 2024 report
Loews Corporation (NYSE: L), a diversified company with businesses in the insurance, energy, hospitality, and packaging industries, on Monday reported higher revenue and profit for the third quarter of 2024.
