2016 earnings estimate was raised to $3.92 from $3.75 at Credit Suisse on Friday.
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Nordstrom Inc. has just released its second-quarter net earnings, which ended August. 1, revealing that total company sales reached $3.6 billion for the quarter.
“TextStyle is an important step forward in our continued efforts to develop ways to serve customers on their terms”, Jamie Nordstrom, president of stores, told the publication.
Nordstrom looks prettier Nordstrom’s fiscal second-quarter results were largely in line with what the retailer had expected. Net income climbed 15%, to $211 million. Cowen and Company reaffirmed a “sell” rating and set a $85.00 price objective on shares of Nordstrom in a research report on Wednesday, May 27th.
Nordstrom saw a number of favorable factors drive its strong performance. Earlier, it estimated per share profit of between $3.65 and $3.80 and increase in sales between 7% and 9% with comparable sales increasing between 2% and 4%. The Company operates in two segments: Retail and Credit. Nordstrom said that the best performing categories included women’s apparel and cosmetics.
The firm’s EPS (diluted) was a solid beat on market watchers’ bets for Q2, while revenues – which rose 9 percent year-over-year – fell slightly short of expectations. Merchandise is typically priced 30 percent to 70 percent lower than items at its traditional Nordstrom stores. The Business managed 290 United States shops situated in 38 states, along with an e commerce business through Nordstrom.com, Nordstromrack.com and HauteLook and TrunkClub.com, as of March 16, 2015.
There was plenty to be happy about in Nordstrom’s Q2 earnings report on Thursday, but its online stores continue to be the shining star. Although the acquisitions added to overhead costs, they nevertheless helped demonstrate the success of part of Nordstrom’s overall growth strategy.
“The JWN model is separating itself from department store peers with recent in-store investments producing four straight quarters of positive brick & mortar same-store-sales (only positive B&M across department stores) equating to consistent high-single-digit top-line growth”, is how J.P. Morgan analysts described the quarter in a note entitled, “Pulling away from the pack”. This compares to earnings of $0.95 per share on revenue of $3.4 billion for the same period one year ago.
Including 16 cents per share gain from the reclassification of receivables as “held for sale” pertaining to the pending credit card transaction with TD Bank, Nordstrom’s earnings per share came in at $1.09.
Still, in the long run, Nordstrom has done a good job balancing its attention between high-end luxury shoppers and lower-end bargain-hunting customers.
Nordstrom is the only retailer in the U.S.to allow customers to shop and buy via text. Deutsche Bank’s price target indicates a potential upside of 6.23% from the stock’s current price.
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The stock price of Nordstrom Inc. has gained 5.46% over the last 200 days, and is in weak up trend.
