iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
19,842 Blog Posts

Nordstrom Coming Down Like a Storm, After Posting Monstrous Earnings Results

Does anyone still shop here? I was a big Nordstrom customer, back in the mid 2000’s when I wanted to impress people with my garments. Now’erdays, I wouldn’t mind looking like a nomad monk, traveling about the mountainside in a sheet (no klan). Nevertheless, the fancy people over at JWN are getting their dentures knocked out for them in an egregious after-hours trading session.

Shares are off by $7.75 or 17% to fresh lows.

The last time JWN was loitering at these levels was August of 2011, a time and place that was horrific for investors–stuck in them middle of a European debt crisis and the degradation of the U.S. credit rating.

I mean, look at this numbers, man. Huge revisions.

  • Reports Q1 (Apr) earnings of $0.36 per share, excluding $0.10 in charges, $0.09 worse than the Capital IQ Consensus of $0.45; revenues rose 2.5% year/year to $3.19 bln vs the $3.23 bln Capital IQ Consensus.
  • First quarter earnings were below the Company’s expectations, primarily driven by lower than planned sales and higher markdowns to better align inventory to current trends.
  • Comps decreased 1.7% vs. +0.2% ests.
  • Full-price net sales, which consist of U.S. full-line stores and Nordstrom.com, combined with Canada and Trunk Club, decreased 2.2% and comparable sales decreased 4.3%. Across U.S. full-line stores and Nordstrom.com, the top-performing merchandise category was Beauty. The younger customer-focused departments in Women’s Apparel continued to reflect strength with positive comparable sales increases. The Midwest was the top-performing full-price geographic region.
  • Off-price net sales, which consist of Nordstrom Rack stores and Nordstromrack.com/HauteLook, increased 11.8% and comparable sales increased 4.6%. The East was the top-performing off-price geographic region.
  • Gross margin of 34.2% decreased 164 basis points YoY primarily due to higher markdowns to better align inventory to current trends.
  • While sales trends were below expectations, we ended the period with inventory growth of 5.4% and net sales growth of 2.5% resulting in a negative spread of 3%, which represents an improvement over the negative spread of 7% in the fourth quarter of 2015.
  • Co issues downside guidance for FY17, lowers EPS to $2.50-2.70 from $3.10-3.35 vs. $3.20 Capital IQ Consensus; lowers FY17 revs to +2.5-4.5% to ~$14.45-14.73 bln (from +3.5-5.5%) vs. $14.74 bln Capital IQ Consensus; lowers comps to -1% to +1% from +0-2%.
  • The Anniversary Sale shift into Q3 will impact comps 200bps in Q2 and +250 bps in Q3.
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7 comments

  1. it is showtime
    it is showtime

    Death to Bio Tech

    Whenever the next downturn may be, you will be down 75%-95%. That’s a fact. Your absurd valuations are an obvious charade, which, someone wants or wanted to perpetuate or create. This is your epitaph, bio tech.

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  2. resumark

    Does JWN still employ a piano man to “fiddle” while the place burns?

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  3. hftongue

    Full-price comparable decreased 4.3% while off-price comps increased 4.6%. So the rich are moving down a tier to do their shopping. Isn’t that a sign of a recession?

    Also, the mid-west was the best performer for full-price. Meaning, the rich in Chicago, St. Louis, Kansas City, Twin Cities, Denver, etc. aren’t hurting as much as the ones in California and New York. Oh times have changed.

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  4. Rhino

    I hit up the half-yearly sale on the reg. The main reason I shop there is their return policy. Case in point, I can fuck up a new pair of Vans donkey kicking a hipster through the front window of a Philz coffeeshop and JWN will replace them no questions asked.

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  5. roundwego

    Upper middle class has been squezed by healthcare and housing. Hence no discretionary spending.

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  6. pb

    I always envision you as dressed like Eddie Redmayne in ‘Black Death’. Won’t find that garb at Nordstrom.

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