The 10-second takeaway
For the quarter ended July 28 (Q2), Nordstrom missed estimates on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share dropped.
Margins dropped across the board.
Nordstrom chalked up revenue of $2.92 billion. The three analysts polled by S&P Capital IQ expected sales of $3.01 billion on the same basis. GAAP reported sales were 7.1% higher than the prior-year quarter's $2.81 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 $0.75. The 23 earnings estimates compiled by S&P Capital IQ forecast $0.74 per share. GAAP EPS of $0.75 for Q2 were 6.3% lower than the prior-year quarter's $0.80 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 35.5%, 110 basis points worse than the prior-year quarter. Operating margin was 9.6%, 180 basis points worse than the prior-year quarter. Net margin was 5.2%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.67 billion. On the bottom line, the average EPS estimate is $0.70.
Next year's average estimate for revenue is $11.76 billion. The average EPS estimate is $3.45.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 509 members out of 650 rating the stock outperform, and 141 members rating it underperform. Among 183 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 156 give Nordstrom a green thumbs-up, and 27 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 $57.13.
If you're invested in retailers like Nordstrom, you should check out the concept that is The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. 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. The Motley Fool has no positions in the stocks mentioned above. 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.