The 10-second takeaway
For the quarter ended April 28 (Q1), Nordstrom beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved.
Gross margins improved, operating margins contracted, and net margins shrank.
Nordstrom logged revenue of $2.54 billion. The five analysts polled by S&P Capital IQ foresaw revenue of $2.50 billion on the same basis. GAAP reported sales were 13% higher than the prior-year quarter's $2.32 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.70. The 18 earnings estimates compiled by S&P Capital IQ forecast $0.75 per share. GAAP EPS of $0.70 for Q1 were 7.7% higher than the prior-year quarter's $0.65 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.1%, 10 basis points better than the prior-year quarter. Operating margin was 10.7%, 100 basis points worse than the prior-year quarter. Net margin was 5.7%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $3.00 billion. On the bottom line, the average EPS estimate is $0.83.
Next year's average estimate for revenue is $11.82 billion. The average EPS estimate is $3.47.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 505 members out of 645 rating the stock outperform, and 140 members rating it underperform. Among 190 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 166 give Nordstrom a green thumbs-up, and 24 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nordstrom is outperform, with an average price target of $57.81.
While many retailers continue to struggle in these tough economic times, a select few are changing the face of the business, and reaping outsize rewards. Is Nordstrom the right stock for you? Read "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail" and decide. Click here for instant access to this free report.
- Add Nordstrom to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.