- Nordstrom beat on both the top and bottom lines.
- But the retailer’s comparable sales fell short of Wall Street expectations.
- The company also slashed its full-year guidance.
- Watch Nordstrom trade live.
Here are the key numbers compared to Wall Street’s estimates, according to Bloomberg data.
- Adjusted earnings per share: $US0.67 ($US0.66 expected)
- Revenue: $US3.75 billion ($US3.69 billion expected)
- Same-store sales: +2.3% (+2.4% expected)
- Full-year earnings guidance: $US3.50 to $US3.65, down from $US3.55 to $US3.65 ($US3.63 expected)
- Full-year sales guidance: $US15.4 billion to $US15.5 billion, down from $US15.5 billion to $US15.6 billion ($US15.9 billion expected)
The earnings adjustment reflected a non-recurring estimated credit-related charge of $US0.28, and the outlook excluded the estimated credit-related charge, according to the company.
“This estimated charge resulted from some delinquent Nordstrom credit card accounts being charged higher interest in error,” Nordstrom said in a press release.
“Excluding this estimated charge, which was not incorporated in the Company’s prior outlook, earnings slightly exceeded the Company’s expectations, reflecting continued top-line strength across its Full-Price and Off-Price businesses.”
In a note to sent out to clients on Thursday, RBC analyst Brian Tunick said, “Nordstrom’s Q3 print is viewed as disappointing given heightened expectations following very strong Q2 results.”
Tunick lowered his price target to $US60 from $US62 – 18% above where shares were trading Friday – and maintained a “sector perform” rating.
Nordstrom was up 4% this year.