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Nordstrom Misses on the Top and Bottom Lines

By Seth Jayson – Updated Apr 10, 2017 at 12:14PM

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Just the facts, Fool.

Nordstrom (NYSE: JWN) reported earnings on May 16. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 4 (Q1), Nordstrom missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share grew.

Gross margins expanded, operating margins contracted, net margins dropped.

Revenue details
Nordstrom recorded revenue of $2.66 billion. The 16 analysts polled by S&P Capital IQ hoped for revenue of $2.74 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.73. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.76 per share. GAAP EPS of $0.73 for Q1 were 4.3% higher than the prior-year quarter's $0.70 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 39.1%, 130 basis points better than the prior-year quarter. Operating margin was 10.0%, 40 basis points worse than the prior-year quarter. Net margin was 5.3%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $3.24 billion. On the bottom line, the average EPS estimate is $0.88.

Next year's average estimate for revenue is $12.73 billion. The average EPS estimate is $3.83.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 526 members out of 668 rating the stock outperform, and 142 members rating it underperform. Among 198 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 178 give Nordstrom a green thumbs-up, and 20 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 $58.95.

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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 position in any of the stocks mentioned. 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.

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Stocks Mentioned

Nordstrom, Inc. Stock Quote
Nordstrom, Inc.
JWN
$17.96 (-2.23%) $0.41

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