Nordstrom Increases Sales but Misses Estimates on Earnings

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Nordstrom (NYS: JWN) reported earnings on May 10. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 28 (Q1), Nordstrom beat slightly on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved.


Gross margins improved, operating margins contracted, and net margins shrank.

Revenue details
Nordstrom logged revenue of $2.54 billion. The five analysts polled by S&P Capital IQ foresaw revenue of $2.50 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $2.32 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.70. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.75 per share. GAAP EPS of $0.70 for Q1 were 7.7% higher than the prior-year quarter's $0.65 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 38.1%, 10 basis points better than the prior-year quarter. Operating margin was 10.7%, 100 basis points worse than the prior-year quarter. Net margin was 5.7%, 50 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.00 billion. On the bottom line, the average EPS estimate is $0.83.

Next year's average estimate for revenue is $11.82 billion. The average EPS estimate is $3.47.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 505 members out of 645 rating the stock outperform, and 140 members rating it underperform. Among 190 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 166 give Nordstrom a green thumbs-up, and 24 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nordstrom is outperform, with an average price target of $57.81.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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