What's in the bag for Nordstrom in Q3?

By: Miguel A. Rodriguez

15:34, 26 November 2020

Shares reached a multi-month high after the report

One of the largest American luxury department store chains – Nordstrom posted Q3 2020 earnings that surprised the market.

In the past quarter, Nordstrom had a $53 million net income, with an EPS of 34 cents. EPS-wise, the market was looking for a -$0.06 EPS result.

The company’s revenue figures came in at $3.09 billion, ahead of the $3.67 billion reported in Q3 2019. However, it was shy of the $3.10 billion forecasted. The company's digital sales of $1.6 billion represent 54% of the overall revenues.

Nordstrom's profits were also amplified by its anniversary sale, which "serves as a strong proof point in our ability to amplify relevant categories, brands, and trends to meet shifting customer preferences," according to CFO Anne Bramman.

For the future, the sales are expected to drop as much as 20%, but Nordstrom's representatives consider this a point of reference considering the uncertainties caused by the pandemic.

Following the announcement, Nordstrom's stock price jumped more than 13%, reaching a level unseen since March 10. In the past six months, the company's share price added 66%, the abovementioned surge included.

Read here about how other retailers have performed in the past quarter!

Sources: thestreet.com, cnbc.com

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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.