3 Things You Missed From Nordstrom's Third-Quarter Earnings Call
After a rough week for the department store chain, shares of Nordstrom (NYSE: JWN) bounced back following a better-than-expected earnings report. Though net sales, which the company uses as a substitute for comparable sales, declined 2.2%, adjusted earnings per share jumped from $0.67 to $0.81, easily beating analysts' consensus expectation of $0.64. Fewer markdowns, improved results from its anniversary sale event, and a 10% decline in shares outstanding due to stock buybacks helped boost the bottom line. Management also lifted its full-year earnings guidance modestly from a $3.25 to $3.50 range to a $3.30 to $3.50 range.
The stock closed last Friday up 10.6% as the market's expectations for the report had been muted following disappointing quarterly reports from other retail stocks like Kohl's and Macy's. With its long-awaited New York City flagship store finally open and the holiday season just around the corner, the company may be at a turning point. During the earnings call, management shared some key information about the factors that could move this stock in the coming quarters.
Image source: Nordstrom.
Source Fool.com