Nordstrom Sees FY23 Revenue Decline, Including Retail Sales And Credit Card Revenues, Of 4%-6% Versus FY22, Including An ~ 250 Basis Point Negative Impact From The Wind-Down Of Canadian Operations And An ~ 130 Basis Point Positive Impact From The 53rd Week
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Nordstrom has updated its fiscal 2023 outlook, anticipating a revenue decline of 4%-6% compared to fiscal 2022. This includes a 250 basis point negative impact from the wind-down of its Canadian operations and a 130 basis point positive impact from an additional 53rd week. The company expects an EBIT margin of 1.8-2.1% and an adjusted EBIT margin of 3.8-4.1%, excluding the Canadian wind-down charges. The income tax rate is projected at 21%, with an 800 basis point benefit from one-time Canada charges. EPS is forecasted at $0.74-$0.94, with an adjusted EPS of $1.90-$2.10, not accounting for any share repurchase activity.
November 21, 2023 | 9:07 pm
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NEGATIVE IMPACT
Nordstrom expects a revenue decline and has provided updated EPS guidance for fiscal 2023, reflecting the impact of its Canadian operations wind-down and an additional week in the fiscal year.
The projected revenue decline and the negative impact from the wind-down of Canadian operations are likely to be viewed negatively by investors, potentially leading to a short-term decrease in stock price. However, the additional 53rd week and the adjusted EPS excluding the wind-down charges may offset some concerns.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100