Nordstrom (JWN) reported earnings Thur 18 Feb 16 (after close)

** charts before earnings **

 

** charts after earnings **

 

Nordstrom misses by $0.07, reports revs in-line; guides FY17 EPS, revs, comps below consensus :

• Reports Q4 (Jan) earnings of $1.17 per share, excluding non-recurring items, $0.07 worse than the Capital IQ Consensus of $1.24; revenues rose 5.2% year/year to $4.14 bln vs the $4.17 bln Capital IQ Consensus.
• Comparable sales increased 1.0%, in-line with estimates.
  • Full-price net sales, which consist of U.S. full-line stores and Nordstrom.com, increased 0.7% and comparable sales increased 0.2%. Top-performing merchandise categories included Beauty and Shoes. Coats, younger customer-focused departments, denim and dresses continued to reflect strength in Women's Apparel. The Midwest and West were the top-performing full-price geographic regions. Full-line store net sales decreased 2.5% and comparable sales decreased 3.2%. Nordstrom.com net sales increased 11%.
  • Off-price net sales, which consist of Nordstrom Rack stores and Nordstromrack.com/HauteLook, increased 12% and comparable sales increased 3.6%. The East was the top-performing off-price geographic region. Nordstrom Rack net sales increased 6.9% while comparable sales decreased 3.0%. Nordstromrack.com/HauteLook net sales increased 50%.
  • Gross profit, as a%age of net sales, of 34.8% decreased 184 basis points compared with the same period in fiscal 2014 primarily due to increased markdowns from lower than planned sales and in response to an elevated promotional environment during the holiday season.
  • Ending inventory growth of 12% exceeded net sales growth of 5.2%. While the Company made the appropriate adjustments to end the year with overall inventory below plan, it has incorporated the impact of a continued promotional environment in its operating plans.
• Co issues downside guidance for FY17, sees EPS of $3.10-3.35 vs. $3.56 Capital IQ Consensus; sees FY17 revs +3.5-5.5% to ~$14.59-14.87 bln vs. $15.1 bln Capital IQ Consensus; comps +0-2% vs. estimates just above 2%.