Where Does Nordstrom Stand in the Retail Apocalypse?
Nordstrom (NYSE: JWN) opened 2019 at approximately $44 per share, but unimpressive sales figures saw shares slide to $25 in August. Things have since improved, and the consumer discretionary stock currently sits at $38, but things are still far below the all-time high of more than $80 achieved in 2015.
The so-called retail apocalypse has drastically disrupted the brick-and-mortar consumer sales landscape in the U.S. since 2010, and apparel stores have been among the harder hit operators. Many retailers have been publishing poor results heading into the important holiday seasons, and there were some souring expectations ahead of Nordstrom's quarterly release.
Nordstrom's most recent quarterly results were a mixed bag that pleased analysts and investors. The company's net sales fell 2.2% year-over-year, but this was superior to analysts' estimates and marked improvement in trend from earlier quarters. While off-price sales grew 1.2%, this was more than offset by declining full-price sales. Importantly, digital sales increased by 7% and now generate 34% of the company's total revenue. While revenue staggered along—down slightly from the prior year—net earnings nearly doubled to $126 million. Gross profit rose a full percentage point, while operating expenses fell by $90 million, though most of this was due to a one-time credit charge in 2018.
Source Fool.com
