Nordstrom misses Wall Street's earnings expectations as off-price chain Rack lifts sales
Nordstrom misses Wall Street's earnings expectations as off-price chain Rack lifts sales
Nordstrom's Earnings Miss and Future Plans
Earnings Miss
Nordstrom reported a loss per share of 24 cents, significantly missing the expected 8 cents, despite higher revenue of $3.34 billion against the anticipated $3.20 billion.
Rack's Performance
The off-price chain Rack outperformed Nordstrom's flagship stores, showing a 7.9% rise in comparable sales, compared to the flagship's 1.8%.
Full-Year Forecast Maintained
Despite the earnings shortfall, Nordstrom reaffirmed its full-year earnings forecast between $1.65 and $2.05 per share, with revenue expected to range from a 2% decline to 1% growth.
Private Takeover Consideration
The Nordstrom family is exploring the possibility of taking the company private, forming a special committee to evaluate potential bids.
What were Nordstrom's earnings per share and revenue for the fiscal first quarter, and how did these figures compare to Wall Street's expectations?
Nordstrom's fiscal first quarter earnings per share (EPS) was a loss of 24 cents, and its revenue was $3.34 billion. Wall Street expectations for the quarter were a loss of 8 cents per share and revenue of $3.20 billion. Thus, Nordstrom's results fell short of analyst expectations for EPS but exceeded expectations for revenue.
How many new Rack stores did Nordstrom open during the quarter, and what is their total target for new Rack stores by the end of the year?
During the fiscal first quarter, Nordstrom opened nine new Rack stores. The company has set a target to open a total of 22 new Rack stores by the end of the year.