Nordstrom Stock Falls After Q4 Results, Weak Guidance

Nordstrom Inc JWN reported its fourth-quarter financial results and issued weak guidance after the bell Tuesday. Here's a look at the details. 

The Details: The company reported quarterly earnings of 96 cents per share, beating the consensus estimate of 88 cents per share. Quarterly sales clocked in at $4.42 billion, which beat the analyst consensus estimate of $4.388 billion.

Nordstrom reported total net sales increased 2.2% versus the same period last year, and gross merchandise value (GMV) increased 2%. Nordstrom banner net sales decreased 3% and GMV decreased 3.4% year-over-year. Net sales for Nordstrom Rack increased 14.6%.

“We delivered on our 2023 guidance and are confident in our expectations for continued sales improvement and sustained profitability in 2024,” said Erik Nordstrom, CEO of Nordstrom.

“We’re laser-focused on efforts we know will drive growth and profitability across the business over the next few years, including new Rack store openings, Nordstrom digital growth and increasing comp store sales. We have a strong team dedicated to building on our heritage of service, and we look forward to helping our customers feel good and look their best in the year ahead,” Nordstrom added.

Outlook: Nordstrom sees full-year earnings in a range of $1.65 to $2.05 per share, versus the $2.05 estimate. The company expects a revenue range, including retail sales and credit card revenues of 2% decline to 1% growth, versus its 53-week fiscal year 2023 revenue.

JWN Price Action: According to Benzinga Pro, Nordstrom shares are trading down 10.43% after-hours at $18.72 at the time of publication Tuesday.

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Photo: Pete Linforth from Pixabay