Nordstrom (JWN.US) stock is trading 5.05 lower despite the fact that the luxury department store chain beat top and bottom line estimates for its latest quarter. However, the retailer recorded a 3.4% slump of its net sales in Q3 and cut its profit outlook for the fiscal year ending January 2023.
- Revenue dropped 2.5% to $3.55 billion, slightly above analysts’ estimates, while earnings recorded a 48.0% decline from last year to 20 cents per share, however managed to beat market projections of 14 cents per share.
- "With regard to recent trends, sales softened in late October and early November but improved in the last two weeks," company's chief accounting officer Michael Maher told investors yesterday. "We believe that unseasonably warm temperatures in certain geographies contributed to the decelerating trends, along with delayed holiday shopping."
- "As for holiday shopping expectations, we believe that this year's calendar, which has an extra Saturday between Thanksgiving and Christmas, will lead some customers to wait until closer to Christmas to make their purchases," he added. "We continue to expect an elevated promotional environment across retail in the fourth quarter.
- Company expects profits in the range from $2.13 to $2.43 per share for its full financial year, which is a significant decline compared to earlier projections of between $2.45 to $2.75 per share.
- Despite the worsening outlook, company still forecasts full-year revenue growth of between 5% and 7% and adjusted profit margins in the region of 4.3% to 4.7%.
Nordstrom (JWN.US) stock recently launched a recovery move, however price pulled back after buyers failed to break above long-term downward trendline which coincides with 200 SMA (red line). On the other hand, downward move is being limited by the local upward trendline and support at $19.10. which is marked with 78.% Fibonacci retracement of the upward wave launched in October 2020. Source: xStation5
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