Nordstrom Stock Falls After Q4 Results, Weak Guidance
Portfolio Pulse from Erica Kollmann
Nordstrom Inc (NYSE:JWN) reported Q4 earnings of 96 cents per share, surpassing the consensus of 88 cents, with sales of $4.42 billion beating estimates of $4.388 billion. Total net sales increased by 2.2%, though Nordstrom banner sales fell by 3%. Nordstrom Rack sales rose by 14.6%. Despite meeting 2023 guidance, the company's 2024 earnings outlook of $1.65 to $2.05 per share falls below the $2.05 estimate, with revenue expected to range from a 2% decline to 1% growth. Shares dropped 10.43% after-hours to $18.72.
March 05, 2024 | 10:19 pm
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NEGATIVE IMPACT
Nordstrom reported higher-than-expected Q4 earnings and sales but provided weak guidance for 2024, leading to a 10.43% drop in after-hours trading.
The negative short-term impact on JWN's stock price is primarily due to the company's weak guidance for 2024, which falls below analyst expectations. Despite beating Q4 earnings and sales estimates, the outlook suggests potential challenges ahead, leading to investor concern and a significant after-hours stock price drop.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100