We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nordstrom, Inc. (JWN - Free Report) posted fourth-quarter fiscal 2023 results, wherein both revenues and earnings surpassed their respective Zacks Consensus Estimate. The company posted adjusted earnings of 96 cents per share, up 29.7% from the year-ago quarter’s reported figure of 74 cents. The figure also surpassed the consensus estimate of 90 cents per share.
Total revenues of $4,420 million rose 2.3% year over year and surpassed the Zacks Consensus Estimate of $4,403 million. Sales were aided by growth across the Nordstrom Rack, somewhat offset by a decline in the Nordstrom banner.
Shares of JWN have risen 31% in the past three months compared with the industry’s 18.5% growth.
Quarterly Highlights
Net sales rose 2.2% year over year to $4,293 million and beat the consensus estimate of $4,206.6 million. Credit Card net revenues grew 6.7% year over year to $127 million and beat our estimate of $120.1 million.
In fourth-quarter fiscal 2023, net sales for the Nordstrom banner decreased 3% from the year-ago quarter's figure to $2,866 million and missed our estimate of $2,960.3 million. This includes 410 basis points (bps) related to the 53rd week. GMV's shares lost 3.4% year over year for the Nordstrom banner in the fiscal fourth quarter. The Nordstrom banner’s net sales included a negative impact of 355 bps related to the wind-down of the Canada operations.
Sales at the Nordstrom Rack banner jumped 14.6% year over year to $1,427 million and outdid our estimate of $1,246.3 million. This includes 580 bps related to the 53rd week.
Digital sales fell 1.7% year over year in the fiscal fourth quarter, accounting for 38% of the quarterly net sales.
Nordstrom's gross profit margin expanded 125 bps year over year to 34.4% for the reported quarter mainly due to lower markdowns, reduced buying and occupancy costs, and increased sales.
Adjusted SG&A expenses, as a percentage of sales, rose 10 bps year over year to 31.6% due to higher labor costs.
Adjusted earnings before interest and taxes (EBIT) of $247 million rose 32.1% year over year in the fiscal fourth quarter and beat our estimate of $217.7 million. The adjusted EBIT margin expanded 120 bps in the quarter to 5.7%.
Other Financials
This currently Zacks Rank #3 (Hold) company ended fourth-quarter fiscal 2023 with available liquidity of $1.4 billion, including $628 million of cash and cash equivalents. The company had a long-term debt (net of current liabilities) of $2.6 billion and total shareholders’ equity of $848 million as of Feb 3, 2024.
As of Feb 3, 2024, JWN’s net cash provided for operating activities was $621 million. The company spent $569 million on capital expenditures for the aforementioned period. Nordstrom recently approved a dividend of 19 cents per share, payable on Mar 27, to shareholders of record as of Mar 12.
Outlook
Management expects fiscal 2024 to be a year of strong momentum for growth and profitability, including the introduction of Rack stores, expansion of the Nordstrom banner digital sales and comparable-store sales boost across the banners.
For fiscal 2024, revenues, comprising retail sales and credit card revenues, are predicted in the range of 2% decline to 1% growth versus the 53-week fiscal 2023. Comparable sales are likely to come in the band of 1% fall to 2% increase year over year. It projects an EBIT margin of 3.5-4% of sales. Nordstrom envisions earnings per share of $1.65-$2.05, excluding any share repurchase impacts.
Gap, a fashion retailer of apparel and accessories, currently sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter average earnings surprise of 137.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Gap’s current financial-year earnings per share indicates growth of 387.5% year over year.
American Eagle, a leading apparel retailer, currently sports a Zacks Rank of 1. AEO delivered an earnings surprise of 23% in each of the trailing four quarters.
The Zacks Consensus Estimate for American Eagle’s current financial-year sales implies growth of 5% from the year-ago reported figure.
Hibbett, a key sporting goods retailer, currently carries a Zacks Rank #2 (Buy). HIBB delivered an earnings surprise of 24.2% in each of the trailing four quarters.
The Zacks Consensus Estimate for Hibbett’s current financial-year sales implies growth of 1.8% from the year-ago reported figure.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Nordstrom (JWN) Q4 Earnings Beat Estimates, Revenues Rise Y/Y
Nordstrom, Inc. (JWN - Free Report) posted fourth-quarter fiscal 2023 results, wherein both revenues and earnings surpassed their respective Zacks Consensus Estimate. The company posted adjusted earnings of 96 cents per share, up 29.7% from the year-ago quarter’s reported figure of 74 cents. The figure also surpassed the consensus estimate of 90 cents per share.
Total revenues of $4,420 million rose 2.3% year over year and surpassed the Zacks Consensus Estimate of $4,403 million. Sales were aided by growth across the Nordstrom Rack, somewhat offset by a decline in the Nordstrom banner.
Shares of JWN have risen 31% in the past three months compared with the industry’s 18.5% growth.
Quarterly Highlights
Net sales rose 2.2% year over year to $4,293 million and beat the consensus estimate of $4,206.6 million. Credit Card net revenues grew 6.7% year over year to $127 million and beat our estimate of $120.1 million.
Nordstrom, Inc. Price, Consensus and EPS Surprise
Nordstrom, Inc. price-consensus-eps-surprise-chart | Nordstrom, Inc. Quote
In fourth-quarter fiscal 2023, net sales for the Nordstrom banner decreased 3% from the year-ago quarter's figure to $2,866 million and missed our estimate of $2,960.3 million. This includes 410 basis points (bps) related to the 53rd week. GMV's shares lost 3.4% year over year for the Nordstrom banner in the fiscal fourth quarter. The Nordstrom banner’s net sales included a negative impact of 355 bps related to the wind-down of the Canada operations.
Sales at the Nordstrom Rack banner jumped 14.6% year over year to $1,427 million and outdid our estimate of $1,246.3 million. This includes 580 bps related to the 53rd week.
Digital sales fell 1.7% year over year in the fiscal fourth quarter, accounting for 38% of the quarterly net sales.
Nordstrom's gross profit margin expanded 125 bps year over year to 34.4% for the reported quarter mainly due to lower markdowns, reduced buying and occupancy costs, and increased sales.
Adjusted SG&A expenses, as a percentage of sales, rose 10 bps year over year to 31.6% due to higher labor costs.
Adjusted earnings before interest and taxes (EBIT) of $247 million rose 32.1% year over year in the fiscal fourth quarter and beat our estimate of $217.7 million. The adjusted EBIT margin expanded 120 bps in the quarter to 5.7%.
Other Financials
This currently Zacks Rank #3 (Hold) company ended fourth-quarter fiscal 2023 with available liquidity of $1.4 billion, including $628 million of cash and cash equivalents. The company had a long-term debt (net of current liabilities) of $2.6 billion and total shareholders’ equity of $848 million as of Feb 3, 2024.
As of Feb 3, 2024, JWN’s net cash provided for operating activities was $621 million. The company spent $569 million on capital expenditures for the aforementioned period. Nordstrom recently approved a dividend of 19 cents per share, payable on Mar 27, to shareholders of record as of Mar 12.
Outlook
Management expects fiscal 2024 to be a year of strong momentum for growth and profitability, including the introduction of Rack stores, expansion of the Nordstrom banner digital sales and comparable-store sales boost across the banners.
For fiscal 2024, revenues, comprising retail sales and credit card revenues, are predicted in the range of 2% decline to 1% growth versus the 53-week fiscal 2023. Comparable sales are likely to come in the band of 1% fall to 2% increase year over year. It projects an EBIT margin of 3.5-4% of sales. Nordstrom envisions earnings per share of $1.65-$2.05, excluding any share repurchase impacts.
Stocks to Consider
We have highlighted three better-ranked stocks, namely Gap (GPS - Free Report) , American Eagle (AEO - Free Report) and Hibbett (HIBB - Free Report) .
Gap, a fashion retailer of apparel and accessories, currently sports a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter average earnings surprise of 137.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Gap’s current financial-year earnings per share indicates growth of 387.5% year over year.
American Eagle, a leading apparel retailer, currently sports a Zacks Rank of 1. AEO delivered an earnings surprise of 23% in each of the trailing four quarters.
The Zacks Consensus Estimate for American Eagle’s current financial-year sales implies growth of 5% from the year-ago reported figure.
Hibbett, a key sporting goods retailer, currently carries a Zacks Rank #2 (Buy). HIBB delivered an earnings surprise of 24.2% in each of the trailing four quarters.
The Zacks Consensus Estimate for Hibbett’s current financial-year sales implies growth of 1.8% from the year-ago reported figure.