Nordstrom (NYSE:JWN) is a Seattle-based fashion retailer that provides apparels, shoes, beauty, accessories, and home goods for women, men, young adults, and children. Shares of the renowned fashion retailer have dropped 4.34% month-over-month as of close on Tuesday, August 27, 2024. The stock is still up 15% in the year-to-date period.
Shares of Nordstrom were up 6.43% in after-hours trading late Tuesday afternoon following its earnings release. The company unveiled its second quarter (Q2) fiscal 2024 results after market closed that same Tuesday. Highlights included positive sales across both banners and digital during the second quarter, it reported earnings per share of $0.72 and adjusted EPS of $0.96.
Beyond that, Nordstrom reported total company net sales growth of 3.4% in Q2 FY2024. Gross profit as a percentage of net sales was reported at 36.6% – up 155 basis points compared to the same period in fiscal 2023. Moreover, ending inventory increased 8.3% over the prior year.
Looking ahead, Nordstrom is projecting a revenue range of 1.0% declines to 1.0% growth, compared to the 53-week fiscal 2023 which includes an approximately 135 basis point unfavourable impact from that extra week. It expects comparable sales range of flat to 2.0% growth against 52 weeks in fiscal 2023, and an adjusted EBIT margin of 3.6% to 4.0% of sales.
Shares of Nordstrom currently possess a favourable price-to-earnings ratio of 11, putting the stock in solid value territory compared to its industry peers.
