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How Nordstrom’s Q1 Results Affected Its Valuation

Sharon Bailey
How Nordstrom’s Q1 Results Affected Its Valuation

On May 18, Nordstrom’s (JWN) 12-month forward PE (price-to-earnings) multiple declined 11.4% to 13x. As discussed previously in this series, Nordstrom exceeded analysts’ revenue and earnings expectations, but investors were disappointed with the slowdown in the company’s same-store sales growth rate. As of May 18, Nordstrom’s department store peers Macy’s (M) and Kohl’s (KSS) were trading at 12-month forward PEs of 9.3x and 11.9x, respectively.