Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, May 24, 2019

Article Excerpt

NORDSTROM INC., $33.50, New York symbol JWN, owns and operates 380 stores in the U.S. and Canada. Those locations sell upscale clothing and footwear. The stock fell 10% this week after the company reported lower-than-expected sales and earnings. In its fiscal 2020 first quarter, ended May 4, 2019, Nordstrom sales (including credit card fees) fell 3.3%, to $3.44 billion from $3.56 billion a year earlier. That missed the consensus forecast of $3.56 billion. The lower sales are due to problems with the roll out of a new loyalty program and weaker demand for premium-priced women’s clothing. However, sales through its websites rose 7%. Online sales now account for 31% of total sales compared to 28% a year earlier. Nordstrom earned $37 million in the quarter, down 57.5% from $87 million. The company spent $186 million on share buybacks in the quarter. As a result, earnings per share declined at a slower rate of 54.9%, to $0.23 from $0.51. That missed the consensus estimate of…