Nordstrom Lags Estimates in 3Q15, Cuts Forecasts, Stock Falls 15%
Nordstrom’s 3Q15 sales
Nordstrom (JWN) reported sales of $3.3 billion in 3Q15, ended October 31, 2015. The company missed the consensus Wall Street analyst sales estimate of $3.4 billion. Nordstrom stated that its 3Q15 performance was below its expectations, with softer sales trends experienced across all channels and merchandise categories.
Sales growth drivers in 3Q15
Nordstrom’s sales grew by 6% in 3Q15 to $3.3 billion, as the fall in the company’s full-line stores was offset by higher online sales and sales growth in the Nordstrom Rack stores.
In the company’s 3Q15 conference call, James F. Nordstrom, the company’s executive vice president and president of stores, stated that the quarter experienced across-the-board lower transactions. However, he also mentioned certain categories that continued to remain strong, like the company’s beauty business and coats merchandise. He also mentioned that departments focused on younger customers, like Savvy and Topshop, performed well in the quarter, especially in the women’s apparel category.
Nordstrom exceeded the consensus analyst sales estimate in the first two quarters of fiscal 2015. Compared to the third quarter, the company reported higher sales growth rates of 9.7% and 9.1%, in 1Q15 and 2Q15, respectively.
The iShares Russell 1000 ETF (IWB) invests 0.04% of its portfolio in Nordstrom.
How was 3Q15 for peers?
Nordstrom’s department store peers delivered mixed results in 3Q15. Macy’s (M), the largest department store in the United States, continued to deliver lower sales. Macy’s 3Q15 sales fell by 5.2%, marking the third straight quarter of falls. JCPenney’s (JCP) turnaround strategy helped the company post a sales growth of 4.8% in 3Q15. JCPenney’s 3Q15 sales of $2.90 billion came ahead of the consensus Wall Street analyst estimate of $2.88 billion.
Kohl’s (KSS) reported sales of $4.43 billion in 3Q15, exceeding the consensus analyst estimate of $4.40 billion.
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