Nordstrom Inc (NYSE: JWN) reported market-beating results for its fiscal second quarter on Tuesday and raised its future guidance above expectations. Shares of the company still tanked about 8.0% in after-hours trading as net sales came in slightly weaker than the 2019 equivalent.
Financial performance
Nordstrom said its net earnings in the second quarter printed at $80 million that translates to 49 cents a share. In the comparable period of lasts year, it had lost $255 million or $1.62 per share. Including credit-card revenue, the luxury department store chain generated $3.7 billion in revenue versus the year-ago figure of $1.9 billion.
While net sales were up 101% on a year over year basis, they came in 6.0% lower than the same quarter of 2019 (pre-pandemic). Nordstrom attributed the decline partially to the last week of its anniversary sale falling in Q3 this year.
According to FactSet, experts had forecast 27 cents of EPS on $3.3 billion in revenue. In separate news, Intuit Inc also published its Q4 earnings report on Tuesday.
Future guidance
For the full year, Nordstrom now forecasts an annualised growth of over 35% versus more than 25% it had guided for previously. After retiring unsecured debt worth $500 million last month, the NYSE-listed company expects a $20 million decline in its annualised interest expense starting in Q3.
By the end of the year, the retailer expects to cut its leverage ratio to roughly three times, it said in the earnings press release.
CEO Erik Nordstrom’s remarks
Commenting on the financial update, CEO Erik Nordstrom said:
“Our Q2 results demonstrate the strength of our two brands, the power of our ‘closer to you’ strategy and the success of our iconic Anniversary Sale. We remain focused on executing our strategy to win in our most important markets, broaden the reach of Nordstrom Rack and increase our digital velocity, and are well-positioned for continued progress in H2.”
Also on Tuesday, peer Best Buy reported its quarterly financial results.
The post Nordstrom shares fall 8.0% despite market-beating Q2 results appeared first on Invezz.
from USA – Invezz https://ift.tt/388iJCT
Wajeeh Khan
Click here to Join RICH DAD SUMMIT online with ROBERT KIYOSAKI - $1 Training for Passive Income: https://bit.ly/RichDadSummitWealthTraining
0 Comments