Nordstrom Inc (NYSE:JWN) Cuts Profit Outlook

Nordstrom Inc (NYSE:JWN) stock fell 5.43% (As on November 23, 12:33:01 AM UTC-4, Source: Google Finance) after the company cut its fiscal full-year 2022 profit forecast after product markdowns. The gross merchandise value (“GMV”) decreased 2.5 percent. Anniversary Sale timing, with one week shifting from the third quarter to the second quarter, had a negative impact of approximately 200 basis points on net sales compared with 2021. During the quarter, Nordstrom banner net sales decreased 3.4 percent, which included a negative impact of approximately 300 basis points from Anniversary Sale timing, and GMV decreased 2.9 percent. Net sales for Nordstrom Rack decreased 1.9 percent. In the third quarter, core categories, including men’s and women’s apparel, shoes and designer, had the strongest growth versus 2021, as customers continued to shop for occasions, travel, work and holidays. Digital sales decreased 16.4 percent compared with the same period in fiscal 2021. The timing shift of the Anniversary Sale had a negative impact on Company digital sales of approximately 300 basis points compared with the third quarter of 2021

JWN in the third quarter of FY 22 has reported the adjusted earnings per share of 20 cents, beating the analysts’ estimates for the adjusted earnings per share of 13 cents. The company had reported 2.9 percent fall in the adjusted revenue to $3.5 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $3.47 billion.

The company’s board of directors declared a quarterly cash dividend of 19 cents per share to be paid to shareholders of record at the close of business on November 29, 2022, payable on December 14, 2022. Year to date, the Company repurchased 2.3 million shares of its common stock for $53 million under its existing $500 million share repurchase program. A total capacity of $447 million remains available under this share repurchase authorization.

The company expects to report revenue growth, including retail sales and credit card revenues, of 5 to 7 percent for the full year, EBIT margin, as percent of sales of 4.1 to 4.4 percent, adjusted EBIT margin of 4.3 to 4.7 percent, EPS of 2.13 dollars to 2.43 dollars and adjusted EPS of 2.30 dollars to 2.60 dollars. The retailer maintained its outlook for revenue growth in the current fiscal year of 5% to 7% but trimmed its forecast for earnings per share to $2.13 from $2.43.


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