Luxury departmental store chain Nordstrom Inc (JWN: NYE) witnessed a sharp decline in its stock price during pre-market trading today. This drop follows the company releasing a weaker-than-expected forecast for its fiscal year 2024.
Key Insights from Nordstrom’s FY24 Projection:
Here are the key highlights from Nordstrom’s Fiscal year 2024 outlook.
- Nordstrom’s projected FY24 earnings per share (excluding stock buybacks) fall between $1.65 and $2.05, missing analyst consensus estimates of $2.01 per share.
- Retail sales are expected to decline by 2% or increase by 1% year-over-year in FY24.
- Same-store sales outlook shows a cautious approach, ranging from a 1% drop to a 2% increase year-over-year, below analyst predictions of a 1.4% gain.
Despite the underwhelming FY24 forecast, Nordstrom did report positive results for the fourth quarter of fiscal year 2023. Net sales grew by 2.2% year-over-year, exceeding analyst expectations. Adjusted earnings per share also surpassed estimates, coming in at $0.96 compared to the projected $0.88.
Stock Target Advisor’s Analysis on Nordstrom:
Following the announcement, Stock Target Advisor’s evaluation of Nordstrom Inc. has undergone some revision. Based on our proprietary analysis that encapsulates numerous factors, we have given Slightly Bearish rating to Nordstrom.
Our review of the recent stock performance presents a mixed bag of 6 positive and 8 negative signals for the company.
Conclusion:
Investors seem to be focusing on the future outlook, however, causing the pre-market stock price slide. Analysts will likely be dissecting the reasons behind Nordstrom’s cautious FY24 forecast in the coming days.
