Earnings Preview: Nordstrom

Nordstrom (JWN) is expected to report Q3 earnings Thursday, November 12 after the market close with a conference call scheduled for 5 pm ET.

Guidance

Analysts are looking for a profit of 38c on revenue of $1.87B. The consensus range is 26c-45c for EPS, and revenue of $1.73B-$1.97B, according to First Call. The company recently reported that its October same-store sales rose 6.5%, more than analysts expected. The company said Q3 SSS fell 1.2% and preliminary Q3 sales were $1.87B, in line with expectations. Previously, Nordstrom raised its FY09 EPS guidance to $1.50-$1.65 from $1.25-$1.50 versus First Call consensus of $1.77. Nordstrom and other upscale department stores have been cutting inventory, lowering prices, and adding more affordable items.

Analyst Views

Deutsche Bank analysts believe that with the exception of cosmetics, prices have fallen about 10% from a year ago. Analysts and investors will listen for comments on which holiday items are selling well and what the company's plans are for inventory next year. Nordstrom shares rose about 16% over the quarter.