Market Overview

Nordstrom Likely A Victim Of Industry Woes As Q4 Report Looms

Share:
Nordstrom Likely A Victim Of Industry Woes As Q4 Report Looms

Shares of Nordstrom, Inc. (NYSE: JWN) have lost 25 percent since the company released its fiscal third-quarter results, versus an 8 percent gain for S&P500. Although Nordstrom seems “relatively well positioned in a tough sector,” its sales and margins could remain under pressure in 2017 due to “earnings growth headwinds, Baird’s Mark R. Altschwager said in a report.

Altschwager maintains a Neutral rating on the company, with a price target of $56.

Shares Hurt By Negative Sector Sentiment

Holiday trends have been challenging for the sector, as reflected by the negative updates from Macy's Inc (NYSE: M), Kohl's Corporation (NYSE: KSS) and J C Penney Company Inc (NYSE: JCP).

Related Link: Don't Get Burned By The 'Death Of The Mall' Trade

While Nordstrom’s shares have been under pressure, the company seems better positioned in the sector, given its “leaner footprint, off-price exposure [and] Canada whitespace,” Altschwager commented.

Q4 And 2017

The analyst expects Nordstrom to report FQ4 EPS at $1.10, versus consensus expectation of $1.16.

The company’s F2017 sales could benefit from “wealth-effect tailwinds,” such as the stock market being at a record high and potential for a tax reform. Altschwager added, however, that Nordstrom’s guidance for the year could be conservative, against a “challenging industry backdrop.”

Investors would likely be focused on holiday trends, product/category-level performance, F2017 guidance, CFO transition [with Mike Koppel scheduled to leave the company in spring] and cost savings & restructuring initiatives.

Image Credit: By Jon (User:jonnyboyca) - Own work (Original text: self-made), Public Domain, via Wikimedia Commons

Latest Ratings for JWN

DateFirmActionFromTo
Jun 2020Morgan StanleyMaintainsEqual-Weight
May 2020UBSMaintainsSell
May 2020Deutsche BankMaintainsHold

View More Analyst Ratings for JWN
View the Latest Analyst Ratings

 

Related Articles (JWN)

View Comments and Join the Discussion!

Posted-In: Analyst Color Earnings News Previews Reiteration Analyst Ratings Movers Trading Ideas Best of Benzinga

Latest Ratings

StockFirmActionPT
ATVINeedhamMaintains90.0
AGRMorgan StanleyInitiates Coverage On46.0
ARCOBradescoUpgrades6.0
CARMorgan StanleyUpgrades37.0
EQTCredit SuisseUpgrades
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com