Earnings Preview: Nordstrom

| About: Nordstrom Inc. (JWN)

Nordstrom (NYSE:JWN) is expected to report Q1 earnings after the market close on Thursday, May 10, with a conference call scheduled for 4:45pm ET.


Analysts are looking for a profit of 75c on revenue of $2.52B. The consensus range is 70c-79c for EPS, and revenue of $2.44B-$2.63B, according to First Call. After reporting in-line Q4 results, the company forecast FY12 EPS $3.30-$3.45, consensus $3.49, on same-store sales up 4%-6%. The company also guided FY free cash flow approximately $400M and said it would continue dividends and share repurchases. During the quarter, Nordstrom reported March SSS up 8.6% and April SSS up 7.1%. The company said Q1 SSS increased 8.5% on preliminary Q1 total retail sales up $2.53B, a 13.7% increase from the year-ago period. Analysts and investor will listen for comments from the company on its free-shipping policy, and whether that affected online sales in the quarter, as well as insight into the strength of the luxury sector.

Analyst Views

Shares were recently upgraded to Buy from Neutral at Goldman, which believes Nordstrom's secular share gain opportunities are under appreciated, and to Outperform from Underperform at CLSA based on investment initiatives that seem to be paying off. Baird raised its price target on Nordstrom to $65 from $63 following its better than expected April comps, and said Nordstrom is well positioned for robust sales growth driven by effective merchandising, channel investments and rapid direct growth.In the year-ago quarter, Nordstrom reported EPS of 65c on revenue of $2.23B.