NORDSTROM Reports Second Quarter Earnings Results for FY2024
August 29, 2023
🌥️Earnings Overview
NORDSTROM ($NYSE:JWN) reported its earnings results for the second quarter of FY2024 which ended on July 31 2023 on August 24 2023. The company’s total revenue for the period amounted to USD 3772.0 million, a 7.9% decrease compared to the same quarter last year. Net income, however, experienced an 8.7% increase from the same period in 2023, totalling USD 137.0 million.
Share Price
The stock opened at $17.4 and closed at $16.8, representing a 4.4% decrease from the previous closing price of $17.6. This decline in stock value could be attributed to a number of factors including investor uncertainty and market volatility. Despite this downturn in stock prices, NORDSTROM reported strong revenue and profit growth in the second quarter, exceeding market expectations.
NORDSTROM also noted that they are continuing to focus on expanding their e-commerce operations, which has helped to increase their customer base and improve profitability. This focus on digital technology and innovation has been a cornerstone of their success in recent years and is expected to remain a major driver of future growth. 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
At GoodWhale, we recently conducted an analysis of NORDSTROM‘s wellbeing. Based on our Risk Rating system, we determined that NORDSTROM is a low risk investment when it comes to financial and business aspects. For non-financial risks, our analysis revealed one risk warning. If you would like to learn more about this risk warning, we invite you to visit our website goodwhale.com. Here, you can access more detailed information about our findings. As a responsible investor, it is important to be aware of all the risks associated with any investment. With GoodWhale, you can easily evaluate these risks and make informed decisions that will benefit you over the long term. 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 has reported its earnings results for the second quarter of FY2024, with total revenue at USD 3772.0 million, representing a 7.9% year-on-year decrease.
However, net income increased 8.7% year-on-year to USD 137.0 million. Following the announcement, the stock price dropped on the same day. Investment analysts have been divided in their opinion of the company’s performance, with some citing the drop in revenue as concerning and others noting the growth in net income as a positive sign for the near future. Investors should closely monitor Nordstrom’s financials and stock price movements to assess the direction of the company in the coming months.
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