NORDSTROM Reports Q2 Earnings Results for FY2024, Ending July 31 2023
August 26, 2023
🌥️Earnings Overview
On August 24 2023, NORDSTROM ($NYSE:JWN) announced their earnings results for the quarter ending July 31 2023, which was part of FY2024 Q2. Total revenue for the quarter came out to be USD 3772.0 million, a decrease of 7.9% compared to the same quarter the prior year. Net income, however, increased by 8.7% to USD 137.0 million.
Share Price
The stock opened at $17.4, but closed 4.4% lower at $16.8 per share from its previous closing price of 17.6. This was a decrease from the previous quarter’s earnings reports. The news sent shockwaves through the financial markets, with investors concerned about NORDSTROM‘s future prospects. Many investors are now questioning whether NORDSTROM will be able to continue to perform competitively in a volatile economy. Despite the challenges faced by NORDSTROM in the past quarter, the company is still optimistic about its future prospects.
NORDSTROM executives cited their focus on digital strategies and customer experience as key areas of focus for the company going forward. They are confident that their customer-first approach will help them to remain competitive and remain profitable in the long run. Overall, despite the results of this quarter, investors hope that NORDSTROM can continue to make the necessary changes to improve their bottom line and remain an attractive investment opportunity in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Nordstrom. More…
| Total Revenues | Net Income | Net Margin |
| 14.82k | 32 | 1.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nordstrom. More…
| Operations | Investing | Financing |
| 1.04k | -489 | -156 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Nordstrom. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 8.8k | 8.13k | 4.17 |
Key Ratios Snapshot
Some of the financial key ratios for Nordstrom are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 6.7% | -16.0% | 0.9% |
| FCF Margin | ROE | ROA |
| 3.7% | 13.6% | 0.9% |
Analysis
GoodWhale has recently analyzed NORDSTROM‘s wellbeing. Our results show that NORDSTROM has an intermediate health score of 6/10, based on our Star Chart assessment of the company’s cashflows and debt. We have classified NORDSTROM as a ‘cow’, or a company that has the track record of paying out consistent and sustainable dividends. This makes them an attractive investment option for investors looking for steady returns with minimal risk. Our analysis also shows that NORDSTROM is strong in profitability, medium in asset, dividend and weak in growth. Therefore, investors who are looking for steady dividends and moderate risk may find NORDSTROM to be an interesting option for them. 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 had a mixed quarter for Q2 2023. Total revenue fell by 7.9%, but net income grew by 8.7%. The stock price decreased on the news. Investors are likely concerned with the top line revenue decline and may be waiting to see if this trend continues in future quarters before investing further in the company.
However, the positive increase in net income and margin expansion is an encouraging sign for shareholders. It remains to be seen if Nordstrom can continue to improve its bottom line despite the sluggish sales.
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