Nordstrom (JWN) reported earnings on Thur 10 Nov 16 (a/h)

** charts before earnings **

 

** charts after earnings **

 

** 3 months later  **

Nordstrom beats by $0.32, beats on revs; raises FY17 EPS above consensus; narrows sales, comp guidance :

• Reports Q3 (Oct) earnings of $0.84 per share, excluding $197 mln write down of Trunk Club*, $0.32 better than the Capital IQ Consensus of $0.52; revenues rose 7.2% year/year to $3.47 bln vs the $3.43 bln Capital IQ Consensus.
  • Comparable sales increased 2.4%, ~in-line with ests. This includes a favorable comparison resulting from one week of the Anniversary Sale, historically the Company's largest event of the year, shifting into the third quarter. Combined second and third quarter comparable sales, which removes the impact of the event shift, increased 0.4 percent compared with the same period last year.
    • In the Nordstrom brand, including U.S. and Canada full-line stores and Nordstrom.com, net sales when combined with Trunk Club, increased 2.4 percent and comparable sales increased 0.9 percent.
    • Across U.S. full-line stores and Nordstrom.com, the top-performing merchandise categories were Women's Apparel and Men's Apparel. The younger customer-focused departments in Women's Apparel continued to outperform, reflecting strength in denim and collaborations with new and emerging limited distribution brands. The West was the top-performing geographic region.
    • In the Nordstrom Rack brand, which consists of Nordstrom Rack stores and Nordstromrack.com/HauteLook, net sales increased 10.1 percent and comparable sales increased 3.9 percent. The East was the top-performing geographic region.
  • Retail gross profit, as a percentage of net sales, of 34.8 percent increased 93 basis points compared with the same period in fiscal 2015. This reflected strong inventory execution, which resulted in net sales growth outpacing inventory growth, in addition to leverage of buying and occupancy costs.
• Co issues guidance for FY17, raises EPS to $2.85-2.95 from $2.60-2.75 vs. $2.74 Capital IQ Consensus; narrows sales to +3.5% to ~$114.59 bln vs. $14.57 bln consensus (from +2.5-4.5%); narrows comps to flat from -1% to +1%; retail EBIT to down 5-10% from down 10-15%.
  • *While this business continues to deliver outsized top-line growth, current expectations for future growth and profitability are lower than initial estimates. To further improve the customer experience and better position Trunk Club's business for profitable growth, the Company is making a number of operational changes.