Nordstrom Stock In Focus After Q3 Earnings Beat: Retail Activity Reaches Year-High
Synopsis
Nordstrom posted adjusted diluted earnings per share (EPS) of $0.33, above consensus estimates of $0.22, according to Stocktwits data.
Shares of luxury retail store Nordstrom ($JWN) were down 11.21% on Wednesday morning after rising in the pre-market session, following a strong earnings quarter, lifting retail sentiment.
Nordstrom posted adjusted diluted earnings per share (EPS) of $0.33, above consensus estimates of $0.22, according to Stocktwits data. Its reported net sales came in at $3.36 billion, beating the estimates $3.34 billion quoted by Wall Street analysts.
Its total comparable sales increased 4% year-on-year. Its women's apparel and active segments saw double-digit growth. While its shoes, men's apparel and kids saw mid to high single-digits growth compared to the previous year, according to a company statement.
"The continued sales growth across the company and strong gross margin in the third quarter indicate our team's focus and efforts are working," Erik Nordstrom, CEO of Nordstrom, said in a statement. "Our customers have a lot of choices, and our results give us encouragement that we're on the right path."
The retailer also received price revisions from several analysts following the stock on Wednesday including Telsey Advisory, Evercore, UBS, and BofA.
Retail activity on the stock was 'extremely bullish' (93/100), reaching a year-high on Wednesday. Message volumes also reached a year-high, inching up from the previous day.
Telsey Advisory upped its price target to $26 from $24 with a 'Market Perform' rating on the shares, the Fly.com reported. The company's "nice earnings beat" was backed by stronger sales, gross margin, and operating expense leverage in Q3, the report said, citing the analyst. Telsey's rating is based on the "channel's traffic headwinds, early innings of growth, and limited visibility to significant upside from a potential take-private transaction."
JWN stock is up 19.57% year-to-date.
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