Please ensure Javascript is enabled for purposes of website accessibility

Nordstrom Q4 Revenue Miss, Outlook Sends Stock Plunging in After-Hours Trading

By James Brumley - Mar 3, 2020 at 4:41PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The upscale shopping venue is holding up better than its peers thanks to e-commerce and off-price, but it still wasn't enough last quarter.

Department-store chain Nordstrom (JWN -4.68%), one of the few bright spots of the so-called retail apocalypse, is showing that it's still not entirely immune to the industry's headwind. Although the company beefed up its top line, profits fell, and both sales and profits fell short of analyst estimates.

During its fourth fiscal quarter ending in early February, Nordstrom's sales of $4.44 billion improved on the year-ago comparable figure of $4.38 billion. Earnings of $1.23 came in well below earnings of $1.48 achieved in the same quarter a year earlier. Even adding back in the accounting charge of $0.19 per share would have left the retailer's bottom line down slightly on a year-over-year basis.

Man standing on top of a falling chart, looking down

Image Source: Getty Images.

More damaging to the stock, however, was its results relative to analyst expectations. They were collectively modeling revenue of $4.6 billion and earnings of $1.48 per share for the quarter ending on Feb. 1.

Nordstrom's lackluster 2020 outlook also helped send shares down as much as 7% following the post-close release of its quarterly numbers on Thursday. The company is looking for sales growth of between 1.5% and 2.5% this year, which it believes will produce profits of between $3.25 and $3.50 per share. For all of 2019, the department-store name earned $3.18 per share.

The company's strongest venues remain off-price storefronts and e-commerce. Digital sales made up 35% of Nordstrom's business during the fourth quarter, up from 33% a year earlier, and revenue from its off-price stores improved 1.8% during the quarter in question. Sales at its full-price namesake stores were up a more muted 1% for the three-month stretch.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Nordstrom, Inc. Stock Quote
Nordstrom, Inc.
$22.18 (-4.68%) $-1.09

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.