Nordstrom Intrinsic Value – NORDSTROM Reports Third Quarter Financial Results for FY2024
December 18, 2023
🌥️Earnings Overview
On November 21 2023, NORDSTROM ($NYSE:JWN) announced their financial results for the third quarter of FY2024 (ending October 31 2023). Total revenue was USD 3320.0 million, showing a 6.4% decrease from the same period of the previous year. Net income was reported as USD 67.0 million, representing a major improvement from the loss of USD 20.0 million recorded in the corresponding quarter of the prior year.
Stock Price
On Tuesday, NORDSTROM reported its third-quarter financial results for the fiscal year 2024. The company’s stock opened at $14.8 and closed at $14.9, down by 1.8% from its last closing price of 15.2. This decrease in share price was likely due to the company’s quarterly results not meeting analysts’ expectations. In spite of the lower than expected financial results, NORDSTROM maintained its profit guidance for the full fiscal year.
The company’s Executive Chairman, Erik Nordstrom, stated that “we are well positioned to take advantage of improving macroeconomic conditions in the second half of the year.” With a healthy balance sheet and continued cost-savings initiatives, NORDSTROM is well-positioned to take advantage of any economic recovery and continue to grow its business. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nordstrom. NORDSTROM_Reports_Third_Quarter_Financial_Results_for_FY2024″>More…
| Total Revenues | Net Income | Net Margin |
| 14.59k | 119 | 2.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nordstrom. NORDSTROM_Reports_Third_Quarter_Financial_Results_for_FY2024″>More…
| Operations | Investing | Financing |
| 813 | -526 | -206 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nordstrom. NORDSTROM_Reports_Third_Quarter_Financial_Results_for_FY2024″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 9.01k | 8.28k | 4.49 |
Key Ratios Snapshot
Some of the financial key ratios for Nordstrom are shown below. NORDSTROM_Reports_Third_Quarter_Financial_Results_for_FY2024″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.9% | -16.0% | 1.6% |
| FCF Margin | ROE | ROA |
| 2.0% | 20.7% | 1.6% |
Analysis – Nordstrom Intrinsic Value
GoodWhale has evaluated the financials of NORDSTROM, and found that the intrinsic value of their share is around $17.9. Our proprietary Valuation Line has calculated this number, and found that NORDSTROM is undervalued by 16.7%, as the stock is currently trading at $14.9. More…
Peers
The retail market is a fiercely competitive one, and nowhere is this more apparent than in the battle between Nordstrom Inc and its rivals Kohl’s Corp, Macy’s Inc, and Chiyoda Co Ltd. All four companies are vying for a share of the market, and each has its own unique strengths and weaknesses. Nordstrom Inc is a leading retailer in the United States, with a strong presence in both online and brick-and-mortar sales. Kohl’s Corp is a close second, with a large number of stores across the country and a growing online business. Macy’s Inc is a bit of an underdog in this fight, but it has a long history and a loyal customer base. Chiyoda Co Ltd is the smallest of the four companies, but it is the only one with a significant presence in Asia.
The competition between these four companies is fierce, and it shows no signs of slowing down. Each company is fighting for a larger share of the market, and they are all doing whatever it takes to win. The customer is the ultimate winner in this battle, as they are the ones who benefit from the lower prices and better selection that come from a competitive market.
– Kohl’s Corp ($NYSE:KSS)
Kohl’s Corp is a large retail company with a market cap of 3.37B as of 2022. The company has a Return on Equity of 16.46%. Kohl’s Corp is a retailer that operates primarily in the United States. The company offers a wide variety of merchandise, including clothing, footwear, and home goods. Kohl’s also offers a variety of services, such as credit card services and gift cards.
– Macy’s Inc ($NYSE:M)
Macy’s Inc is an American department store chain founded in 1858. It is one of the largest department store chains in the United States, with around 850 stores in 45 states. Macy’s Inc has a market cap of $5.14B as of 2022 and a Return on Equity of 40.81%. The company operates Macy’s and Bloomingdale’s department stores, as well as the macys.com and bloomingdales.com websites. Macy’s Inc also owns and operates the Macy’s Thanksgiving Day Parade and the Fourth of July Fireworks Celebration.
– Chiyoda Co Ltd ($TSE:8185)
Chiyoda Co Ltd is a Japanese company that provides engineering, construction, and other services. The company has a market capitalization of 25.03 billion as of 2022 and a return on equity of -2.63%. The company’s main businesses include oil and gas, chemicals, power, and infrastructure. Chiyoda has been involved in some of Japan’s largest projects, including the Tokyo Skytree and the Tokyo Olympics Stadium.
Summary
Nordstrom‘s financial results for the third quarter of FY2024 showed a 6.4% decline in total revenue, coming in at USD 3320.0 million. Net income was USD 67.0 million, which was an improvement from a loss of USD 20.0 million in the same quarter last year. From an investor’s standpoint, these figures point to a good performance in the face of a difficult economic climate and could be a good sign of future growth potential. Going forward, investors should keep an eye on Nordstrom’s sales and profitability trends in order to make informed investment decisions.
