Nordstrom’s Stock Drops as 2022 Earnings Guidance is Lowered
January 31, 2023
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Nordstrom ($NYSE:JWN) is one of the leading luxury department stores in the United States, providing shoppers with a wide selection of apparel, accessories, beauty products, and home décor. Unfortunately, Nordstrom’s stock dropped during Thursday’s late trading period after their decision to lower their 2022 earnings guidance. Management now predicts the full-year revenue to increase by a rate between 5% and 7%, which is the lower limit of their original forecast. This shift was due to a slower than expected holiday sales season. In order to remain competitive during this period, Nordstrom had to offer discounts which had a negative effect on their profits. As a result, they reduced their adjusted EPS guidance for the year to a range between $1.45 and $1.65 from its prior outlook of $2.05 to $2.25. The lowered earnings guidance has put investors on edge and caused Nordstrom’s stock to drop in value. It remains to be seen whether or not the company can recover from this setback and continue to experience success in the future. In order to do so, they will need to find a way to offset their losses from the holiday season and continue to offer high quality products and services that appeal to their customers. Nordstrom is facing a challenging situation as they try to regain their footing after reducing their 2022 earnings guidance.
However, with the right strategies and focus, they can still turn things around and continue to be a leader in the luxury department store industry.
Share Price
Nordstrom‘s stock took a hit on Thursday as the company lowered their 2022 earnings guidance. The day started with media exposure mostly being positive, but the stock opened at $17.3 and closed at $17.4, down by 0.7% from the previous closing price of 17.6. This news is especially concerning since Nordstrom has seen a decline in sales over the past year due to the pandemic. The company has seen a sharp drop in store traffic due to the closures of many brick-and-mortar locations, which has caused sales to plummet.
Additionally, Nordstrom recently announced that it would shutter its retail stores in Canada, resulting in even more lost sales. It remains to be seen how this news will affect Nordstrom’s stock in the long run, but for now investors are feeling uneasy as the company’s 2022 earnings guidance has been lowered. Despite the issues faced by Nordstrom due to the pandemic, investors are still optimistic about the company’s prospects for the future and believe that it will be able to turn things around in the coming years. 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 |
| 15.7k | 326 | 2.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Nordstrom. More…
| Operations | Investing | Financing |
| 668 | -386 | -252 |
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 |
| 9.39k | 8.79k | 3.79 |
Key Ratios Snapshot
Some of the financial key ratios for Nordstrom are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.5% | -11.0% | 3.7% |
| FCF Margin | ROE | ROA |
| 1.3% | 56.9% | 3.8% |
VI Analysis
According to VI Star Chart, NORDSTROM has an intermediate health score of 6/10, which indicates that the company is likely to be able to pay off debt and fund future operations. NORDSTROM is classified as ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Investors who may be interested in such companies include those who are looking for a steady return on investment with moderate risk. NORDSTROM is strong in terms of profitability, but only medium in terms of assets and weak in terms of dividend growth. As such, investors who are looking for more aggressive growth may not find NORDSTROM to be an ideal option. However, investors who are focused on capital preservation and stability may find NORDSTROM to be a good choice. More…
VI 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 recently released their 2022 earnings guidance and the news was not as favorable as expected. This resulted in a drop in the company’s stock price. Despite the recent setback, overall investor sentiment for Nordstrom is still positive.
Analysts suggest investors consider Nordstrom due to its strong history of customer service and financial stability, as well as its potential for long-term growth. Those looking to invest in Nordstrom should carefully assess their risk tolerance and financial goals before making any decisions.
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