Nordstrom’s Fiscal 3Q17 Results: Could Stock Recover?
Nordstrom (JWN), an upscale department store chain, is slated to announce its fiscal 3Q17 results after the markets close on November 9, 2017. JWN stock has fallen 14.3% since the company announced its fiscal 2Q17 results. The stock has been in the news in the last several months since management was contemplating the idea of going private. However, on October 16, 2017, the stock fell 5.3% in reaction to the announcement that the Nordstrom family had suspended its efforts to take the company private.
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Stock movement so far
As of November 3, 2017, Nordstrom stock has fallen 19.7% YTD (year-to-date). Its peer department stores Macy’s (M), JCPenney (JCP), and Kohl’s (KSS) have fallen 48.7%, 71.5%, and 14.9%, respectively, YTD.
Nordstrom and its peers have significantly underperformed the S&P 500 Index (SPX-INDEX), which has risen 15.6% YTD. The Consumer Discretionary Select Sector SPDR ETF (XLY) has risen 12.6% in the same period.
Department stores have been struggling to grow their top lines mainly due to competition in the retail space from online retailers such as Amazon (AMZN). Off-price retailers are also impacting the market share, attracting customers with their discounted prices.
Nordstrom exceeded analysts’ revenue and earnings expectations in fiscal 2Q17. In this series on the upcoming fiscal 3Q17 results, we’ll see what analysts expect for both revenue and earnings. We’ll also take a close look at the company’s margins and valuation.
Let’s start with expectations for Nordstrom’s fiscal 3Q17 revenue.