Nordstrom Stock In Focus As Retailer Raises Outlook After Strong Holiday Sales: Retail's Not Convinced
Nordstrom said it now expects full-year fiscal sales growth of 1.5% to 2.5%, compared to its previous range of flat-to-up 1%.
Shares of luxury retailer Nordstrom were in the spotlight as the company raised its topline outlook and reaffirming our profitability guidance based on strong holiday results, but retail sentiment was in the ‘bearish’ mood.
The Seattle-based said holiday shopping – both inside stores and digital channels – was better than what the store had anticipated.
Nordstrom said it now expects full-year fiscal sales growth of 1.5% to 2.5%, compared to its previous range of flat-to-up 1%. Comparable sales growth are expected to range from 2.5% to 3.5% versus 52 weeks in fiscal 2023. That is higher than its prior outlook of 1% to 2% growth.
Nordstrom reported a net sales increase of 4.9% and a comparable sales increase of 5.8% for the nine-week holiday period ended January 4, 2025, compared to the same period last year.
"As a result of our efforts to remain competitive in the promotional environment and the strength of our offering, our holiday sales in November and December exceeded the expectations we shared during our most recent earnings call," Erik Nordstrom, CEO of Nordstrom said.
Telsey Advisory recently lowered the firm’s price target to $24 from $26 with a ‘Market Perform’ rating.
Despite the update guidance, retail sentiment on Stocktwits turned ‘bearish’ on Monday from ‘bullish’ a week ago. Message volumes fell to ‘normal’ zone.
JWN sentiment meter and message volumes on Jan 13 as of 1:10 am ETNordstrom in December struck an agreement with Erik, Pete, Jamie Nordstrom, other members of the Nordstrom family, and El Puerto de Liverpool S.A.B. de C.V. to take the company private in a $6.25 billion deal.
The company’s shareholders are set to receive $24.25 in cash for each share of its common stock.
Nordstrom shares are down 0.62% year to date.
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