Shares of Nordstrom (JWN) surged in post-market trading after the retailer reported better-than-expected earnings for the second quarter and raised its profit guidance for fiscal 2016.
EARNINGS/GUIDANCE: After the market close, Nordstrom reported Q2 EPS of 67c on revenue of $3.65B, as compared to analyst estimates of 56c and $3.68B, respectively. Total company comparable sales fell 1.2% year-over-year, beating a FactSet expectation for a 3.1% decline. A timing shift related to Nordstrom’s Anniversary Sale unfavorably impacted comparable sales by about 250 basis points, the company noted. Looking ahead, the company raised its adjusted EPS view for fiscal 2016 to a range of $2.60-$2.75 from $2.50-$2.70. In addition, Nordstrom reaffirmed its FY16 revenue growth view of 2.5%-4.5%. Analysts expect the company to report FY16 EPS of $2.57 on revenue of $14.77B.
MANAGEMENT COMMENTS: On the company’s Q2 earnings conference call, Nordstrom chief financial officer Michael Koppel said the retailer’s inventory is “well-positioned” and “in-line with sales trends,” while co-president Blake Nordstrom said the Anniversary Sale reached an all-time high in sales volume.
SECTOR PEERS: Several of Nordstrom’s competitors also reported results this week. Dillard’s (DDS) released its quarterly earnings after Thursday’s close, reporting Q2 EPS of 35c on revenue of $1.45B against expectations for 31c on $1.48B, while comparable sales declined 5%. Before the market open, Macy’s (M) and Kohl’s (KSS) both reported better-than-expected quarterly earnings and same-store sales figures. In addition, Gap (GPS) earlier this week reported a 4% year-over-year decline in same-store sales for the month of July.
OTHERS TO WATCH: In after hours trading, J.C. Penney (JCP), which is set to report quarterly results before the market open tomorrow, rose 3.82% to $10.32.
PRICE ACTION: Nordstrom jumped 10.68% to $52.64 while Dillard’s fell 3.45% to $64.12 in after hours trading.
