uploads///JWN Outlook

Nordstrom Raises Its Outlook Following Strong 2Q15 Results


Dec. 4 2020, Updated 10:51 a.m. ET

Outlook revised

Nordstrom (JWN) raised its outlook for fiscal 2015, which ends January 30, 2016, backed by strong sales growth in the first half of 2015. The company’s investments in its e-commerce business, expansion of Rack stores, and entry into the Canadian market are helping to boost its top line.

Article continues below advertisement

Guidance for fiscal 2015

Nordstrom raised both its sales and earnings guidance for fiscal 2015. Including the impact of the sale of its credit card portfolio, Nordstrom expects its fiscal 2015 net sales to increase by 8.5% to 9.5% compared to the prior guidance of a 7%-to-9% increase. Same-store sales are now expected to grow by 3.5% to 4.5%, up from the prior outlook of a 2%-to-4% increase. The company also revised its margin outlook, which we discussed in Part 5 of this series.

Nordstrom’s outlook for diluted EPS (earnings per share) is now in the range $3.85 to $3.95 compared to the prior guidance of $3.65 to $3.80. Nordstrom makes up 0.1% of the portfolio holdings in the iShares Russell 1000 Growth ETF (IWF) and 1.1% of the SPDR S&P Retail ETF (XRT).

Off-price retailer TJX Companies (TJX) also raised its outlook for the comparable fiscal year, following strong performance in the second quarter. Macy’s (M) lowered its sales guidance for fiscal 2015, given the company’s weak sales in the first half of the year. Ross Stores (ROST) issued a cautious outlook for the second half, given the uncertainty in the retail sector and the macroeconomic environment.

Planned store openings for 3Q15

In 3Q15, Nordstrom plans to open three full-line stores, including its international store in Vancouver, Canada. The other two full-line stores will open in Minneapolis, Minnesota, and Milwaukee, Wisconsin. The company also plans to relocate a full-line store in Los Angeles, California, and to open 16 Nordstrom Rack stores.

For more updates and analysis, visit our Department Stores page.


More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.