NORDSTROM Reports 10.9% Decrease in Revenue for First Quarter of FY2024

🌥️Earnings Overview

On May 31 2023, NORDSTROM ($NYSE:JWN) reported total revenue of USD 3181.0 million for the first quarter of FY2024, which ended April 30 2023 – a 10.9% decrease compared to the same period last year. The company also reported a net income of USD -205.0 million, a drastic decline from the USD 20.0 million recorded the year before.

Analysis

GoodWhale has conducted an analysis of NORDSTROM‘s wellbeing, and according to Star Chart NORDSTROM is classified as a ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. This makes it an attractive option for investors looking for a dependable and reliable source of income. NORDSTROM has an intermediate health score of 6/10, based on its cashflows and debt, which is likely to help the company safely ride out any crisis without the risk of bankruptcy. Furthermore, NORDSTROM is strong in profitability, medium in asset, dividend and weak in growth, making it an ideal investment for those seeking to diversify their portfolios. The company is a solid choice for dividend investors seeking stability and a dependable return. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Nordstrom. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Nordstrom. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Nordstrom. More…

Key Ratios Snapshot

Some of the financial key ratios for Nordstrom are shown below. 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 Inc. reported their first quarter financial results of FY2024 on May 31st, 2023. Net income was a loss of USD 205 million, versus a profit of USD 20 million the prior year. Following the announcement, the stock price moved down.

For investors considering investing in Nordstrom, the results suggest that the company is facing financial difficulty. Although the company has not declared bankruptcy, a further analysis of the financials is necessary to assess the risk involved in investing in Nordstrom.