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Disappointing Q3 earnings for Nordstrom

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Miguel A. Rodriguez
Miguel A. Rodriguez
24 November 2021
The department store chain reported earnings that fell short of analysts’ expectations

Nordstrom reported earnings per share of 39 cents versus 56 cents touted. The revenue came in at $3.65 billion, higher than the $3.55 billion expected. At the same time, the store chain’s net income rose to $64 million from $53 million. Its sales went up as shoppers refreshed their wardrobes and returned to offices and social events.

However, digital sales fell 12% year over year and rose 20% on a two-year basis. Nordstrom also revealed that inventory levels grew 13% compared to the same period of 2019 because it pulled forward some goods orders to mitigate the ongoing supply chain shortage.

For the future, Nordstrom reiterated its revenue forecast. According to CEO Erik Nordstrom, the company needs to move faster to capitalize on its strengths and increase its market share.

After the news hit the wires, Nordstrom shares lost more than 23%. As of Tuesday’s market closing bell, Nordstrom stock price gained less than 1% since the beginning of the year.

Source: cnbc.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.