Nordstrom, Inc. (NYSE:JWN) shares are trading higher Friday after the company posted mixed first-quarter financial results.
The Details:
Nordstrom reported adjusted losses of 24 cents per share, missing the analyst estimate of losses of 7 cents per share. Quarterly sales came in at $3.22 billion, beating the $3.2 billion consensus estimate.
Nordstrom net sales increased 5.1% versus the same period in fiscal 2023, and total company comparable sales increased 3.8%. Gross merchandise value (GMV) increased 4.9%.
During the quarter, Nordstrom banner net sales increased 0.6% and comparable sales increased 1.8%. Net sales for Nordstrom Rack increased 13.8% and comparable sales increased 7.9%.
"The positive sales growth we saw across the company in the first quarter is very encouraging, and we're particularly excited about the progress that our Rack banner is making," said Erik Nordstrom, CEO of Nordstrom, Inc. "While we're pleased with our topline growth, profitability fell short of our expectations."
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Outlook:
Nordstrom reaffirmed its fiscal year 2024 outlook and sees earnings of between $1.65 and $2.05 per share, versus the $1.79 per share analyst consensus estimate.
"Looking ahead, our strong sales performance gives us momentum heading into the rest of the year and the confidence to reaffirm our 2024 guidance," said Nordstrom.
Analysts React:
Multiple analysts updated coverage on the stock after the print:
- Evercore ISI Group analyst Michael Binetti maintained Nordstrom with an In-Line rating and raised the price target from $17 to $19.
- Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating and a $19 price target.
- B of A Securities maintained its Underperform rating and raised the price target from $15 to $18 on the stock.
JWN Price Action: According to Benzinga Pro, Nordstrom shares are up 4.33% at $21.94 at the time of publication Friday.
Image: Courtesy of Nordstrom, Inc.