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Factors Likely to Influence Nordstrom's (JWN) Q2 Earnings
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Nordstrom, Inc. (JWN - Free Report) is scheduled to release second-quarter fiscal 2022 numbers on Aug 23, after the closing bell. The fashion specialty retailer is expected to have witnessed revenue and earnings growth in the to-be-reported quarter.
The Zacks Consensus Estimate for the fiscal second-quarter earnings is pegged at 81 cents per share, suggesting a 65.3% improvement from the year-ago quarter's reported figure. The consensus mark has been unchanged in the past 30 days. The consensus mark for revenues is pegged at $3.97 billion, indicating a rise of 8.5% from the figure reported in the year-ago quarter.
In the last reported quarter, the company posted an earnings surprise of 25%. Also, it delivered an earnings surprise of 25.3%, on average, in the trailing four quarters.
Nordstrom has been gaining from the solid demand for apparel and footwear, positive pricing, lower markdowns, and broad-based growth across core categories and regions. Robust digital growth and compelling merchandise have also been drivers. Core categories, including men's and women's apparel, shoes, and designer, have been performing well. Consumers refreshing their wardrobes for office, travel and other social activities contributed to quarterly growth.
The company has been on track to enhance the performance of Nordstrom Rack and improve inventory. It has been progressing well with its More Reasons to Rack campaign, which is likely to have increased brand awareness and boosted traffic in the to-be-reported quarter.
Nordstrom has been focused on technology advancement by boosting e-commerce and digital networks, improving its supply-chain channels, and marketing efforts. The digital business has been witnessing gains from improved digital traffic across both Nordstrom and Nordstrom Rack, as well as increased utilization of Buy Online, Pick Up In-Store service. Its mobile app has also been performing well. Alongside these, the integration of Rack.com onto Nordstrom.com should have contributed to the company's top line in the to-be-reported quarter.
The company's fiscal second-quarter performance is expected to have benefited from its market strategy, which helps engage with customers through better service and greater access to products, irrespective of the shopping mode. As part of the strategy, Nordstrom expanded services, including order pickup and ship-to-store, to all Nordstrom Rack stores.
JWN has also been focused on the closer-to-you strategy, aiming to link stores and services to expedite deliveries, expand online offerings and add cheaper merchandise to its Rack off-price stores to improve customers' shopping experiences. A rise in new customers, enhanced personalization and expanded product offering are likely to have aided the fiscal second-quarter performance. The company is also likely to have benefited from efforts to expedite delivery, expand distribution and fulfillment centers, and the market level selection for in-store shopping, as well as same-day and next-day pickup.
However, the company's sales and earnings performances are expected to have been impacted by higher freight and labor expenses. It has also been witnessing ongoing industry-wide supply-chain disruptions for quite some time now, leading to a lack of product availability, order cancellations, and shipment delays.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Nordstrom this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Nordstrom has an Earnings ESP of -1.49% and a Zacks Rank #3.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +2.37% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports second-quarter fiscal 2022 results. The consensus mark for ULTA’s quarterly revenues is pegged at $2.2 billion, which suggests a rise of 11.7% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Ulta Beauty’s earnings has moved up 0.4% to $4.86 per share in the past seven days. The consensus estimate indicates 6.6% growth from $4.56 reported in the year-ago quarter. ULTA has delivered an earnings beat of 49.8%, on average, in the trailing four quarters.
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank of 2. The company is likely to register increases in the top and bottom lines when it reports second-quarter fiscal 2022 numbers. The consensus mark for DG’s quarterly earnings has moved down by a penny in the past seven days to $2.91 per share. The consensus estimate suggests 8.2% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Dollar General’s quarterly revenues is pegged at $9.4 billion, which suggests growth of 8.4% from the figure reported in the prior-year quarter. DG has delivered an earnings beat of 2.8%, on average, in the trailing four quarters.
Advance Auto Parts (AAP - Free Report) currently has an Earnings ESP of +0.48% and a Zacks Rank of 3. The Zacks Consensus Estimate for its second-quarter 2022 earnings has moved south by 0.5% to $3.75 per share in the past 30 days. However, the consensus mark suggests 10.3% growth from the year-ago quarter’s reported number.
Advance Auto Parts’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.75 billion, which suggests a rise of 3.7% from the figure reported in the prior-year quarter. AAP has delivered an earnings beat of 9.2%, on average, in the trailing four quarters.
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Factors Likely to Influence Nordstrom's (JWN) Q2 Earnings
Nordstrom, Inc. (JWN - Free Report) is scheduled to release second-quarter fiscal 2022 numbers on Aug 23, after the closing bell. The fashion specialty retailer is expected to have witnessed revenue and earnings growth in the to-be-reported quarter.
The Zacks Consensus Estimate for the fiscal second-quarter earnings is pegged at 81 cents per share, suggesting a 65.3% improvement from the year-ago quarter's reported figure. The consensus mark has been unchanged in the past 30 days. The consensus mark for revenues is pegged at $3.97 billion, indicating a rise of 8.5% from the figure reported in the year-ago quarter.
In the last reported quarter, the company posted an earnings surprise of 25%. Also, it delivered an earnings surprise of 25.3%, on average, in the trailing four quarters.
Nordstrom, Inc. Price and EPS Surprise
Nordstrom, Inc. price-eps-surprise | Nordstrom, Inc. Quote
Key Factors to Note
Nordstrom has been gaining from the solid demand for apparel and footwear, positive pricing, lower markdowns, and broad-based growth across core categories and regions. Robust digital growth and compelling merchandise have also been drivers. Core categories, including men's and women's apparel, shoes, and designer, have been performing well. Consumers refreshing their wardrobes for office, travel and other social activities contributed to quarterly growth.
The company has been on track to enhance the performance of Nordstrom Rack and improve inventory. It has been progressing well with its More Reasons to Rack campaign, which is likely to have increased brand awareness and boosted traffic in the to-be-reported quarter.
Nordstrom has been focused on technology advancement by boosting e-commerce and digital networks, improving its supply-chain channels, and marketing efforts. The digital business has been witnessing gains from improved digital traffic across both Nordstrom and Nordstrom Rack, as well as increased utilization of Buy Online, Pick Up In-Store service. Its mobile app has also been performing well. Alongside these, the integration of Rack.com onto Nordstrom.com should have contributed to the company's top line in the to-be-reported quarter.
The company's fiscal second-quarter performance is expected to have benefited from its market strategy, which helps engage with customers through better service and greater access to products, irrespective of the shopping mode. As part of the strategy, Nordstrom expanded services, including order pickup and ship-to-store, to all Nordstrom Rack stores.
JWN has also been focused on the closer-to-you strategy, aiming to link stores and services to expedite deliveries, expand online offerings and add cheaper merchandise to its Rack off-price stores to improve customers' shopping experiences. A rise in new customers, enhanced personalization and expanded product offering are likely to have aided the fiscal second-quarter performance. The company is also likely to have benefited from efforts to expedite delivery, expand distribution and fulfillment centers, and the market level selection for in-store shopping, as well as same-day and next-day pickup.
However, the company's sales and earnings performances are expected to have been impacted by higher freight and labor expenses. It has also been witnessing ongoing industry-wide supply-chain disruptions for quite some time now, leading to a lack of product availability, order cancellations, and shipment delays.
What Does the Zacks Model Say?
Our proven model does not conclusively predict an earnings beat for Nordstrom this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Nordstrom has an Earnings ESP of -1.49% and a Zacks Rank #3.
Stocks With Favorable Combination
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Ulta Beauty (ULTA - Free Report) currently has an Earnings ESP of +2.37% and a Zacks Rank of 2. The company is likely to register top and bottom-line growth when it reports second-quarter fiscal 2022 results. The consensus mark for ULTA’s quarterly revenues is pegged at $2.2 billion, which suggests a rise of 11.7% from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ulta Beauty’s earnings has moved up 0.4% to $4.86 per share in the past seven days. The consensus estimate indicates 6.6% growth from $4.56 reported in the year-ago quarter. ULTA has delivered an earnings beat of 49.8%, on average, in the trailing four quarters.
Dollar General (DG - Free Report) currently has an Earnings ESP of +1.14% and a Zacks Rank of 2. The company is likely to register increases in the top and bottom lines when it reports second-quarter fiscal 2022 numbers. The consensus mark for DG’s quarterly earnings has moved down by a penny in the past seven days to $2.91 per share. The consensus estimate suggests 8.2% growth from the year-ago quarter’s reported number.
The Zacks Consensus Estimate for Dollar General’s quarterly revenues is pegged at $9.4 billion, which suggests growth of 8.4% from the figure reported in the prior-year quarter. DG has delivered an earnings beat of 2.8%, on average, in the trailing four quarters.
Advance Auto Parts (AAP - Free Report) currently has an Earnings ESP of +0.48% and a Zacks Rank of 3. The Zacks Consensus Estimate for its second-quarter 2022 earnings has moved south by 0.5% to $3.75 per share in the past 30 days. However, the consensus mark suggests 10.3% growth from the year-ago quarter’s reported number.
Advance Auto Parts’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.75 billion, which suggests a rise of 3.7% from the figure reported in the prior-year quarter. AAP has delivered an earnings beat of 9.2%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.