Nordstrom (NYSE:JWN) tanked in pre-market trading after the luxury retailer projected FY24 earnings of $1.65 to $2.05 per share, excluding any stock buyback activity. This was below consensus estimates of $2.01 per share. The company expects retail sales growth of -2% to 1% year-over-year in FY24. This estimate includes a 135 basis point hit from having one less week in FY24.
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Nordstrom also expects comparable sales to drop by 1% or grow by 2% year-over-year. The retailer has forecasted same-store sales within a range of -1% to 2%, below analysts’ estimates of a 1.4% gain at the midpoint.
In the fourth quarter, the luxury retailer generated net sales of $4.42 billion, up by 2.2% year-over-year, beating consensus estimates of $4.38 billion. The company reported adjusted earnings of $0.96 per share in Q4, compared to earnings of $0.74 per share in the same period last year, surpassing Street estimates of $0.88 per share.
Is Nordstrom a Buy or Sell?
Analysts remain sidelined about JWN stock with a Hold consensus rating based on four Holds. Over the past year, JWN has gained by more than 11%, and the average JWN price target of $18 implies a downside potential of 13.88% at current levels. However, it’s worth noting that estimates will likely change following today’s earnings report.
