Nordstrom"s $85 Rock Is Out of Stock
One of the worst-performing stocks in the S&P 500 right now is Nordstrom (JWN) . In fact, 482 stocks have performed better this year. Yet most analysts remain bullish on the company. Nordstrom reports earnings on Feb. 23.
The stock bottomed out last June after a series of ugly quarterly misses. The shares climbed as investors bought the stock on its low valuation and the company"s optimism regarding the coming holiday season. The stock rose 64% from the lows.
The stock reversed course in mid-December after a brutal downgrade from JPMorgan that turned investor sentiment negative. the stock plunged 7.5% to $51. Then, on Jan. 5, Kohl"s (KSS) preannounced a disastrous holiday quarter. Nordstrom kept sliding and now seems trapped at $44.
On Nov. 10, Nordstrom reported third-quarter fiscal 2016 earnings of 84 cents per share, 32 cents better than expected. Revenue rose 7.2% year over year.
Same-store sales rose 2.4%, in line with estimates. The quarter included Nordstrom"s anniversary sale. Because of a calendar shift, the sale was recorded in the third quarter. Taken together, same-store sales for the second and third quarter were up 0.4%.
The Nordstrom Rack brand, which includes Nordstrom Rack, Hautelook and Nordstromrack.com, saw net sales jump 10.1% and comparable sales grow by 3.9%.
Gross margin rose 93 basis points to 34.8%, helped by tight inventory control, fewer markdowns and occupancy leverage. Selling, general and administrative expenses rose 3% to 28.5%.
While the company posted a solid quarter, the fourth quarter looks more difficult. Analysts are looking for earnings of $1.17 per share on $4.3 billion in revenue.
Source: http://news.google.com/news/url?sa=t&fd=R&ct2=us&usg=AFQjCNGcoWgyqcc_KHVCN0PapKfN8-s_Gg&clid=c3a7d30bb8a4878e06b80cf16b898331&cid=52779361685272&ei=C4icWIiSB-rU3AGxu5lo&url=https://www.thestreet.com/story/13969133/1/why-nordstrom-stock-is-stuck-in-the-discount-bin.html
