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Research Alert: CFRA Lowers Opinion On Shares Of Nordstrom, Inc. To Sell From Hold
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Research Alert: CFRA Lowers Opinion On Shares Of Nordstrom, Inc. To Sell From Hold
May 31, 2024 5:56 AM

08:30 AM EDT, 05/31/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain our 12-month price target of $16, based on 8.0x our FY 25 (Jan.) EPS estimate and in line with peers average forward P/E multiple. We maintain our FY 25 and FY 26 EPS estimates at $2.00, respectively. JWN posts normalized Q1 EPS of -$0.24 vs. $0.07, $0.17 below consensus estimates on revenue of $3.34B vs. $3.18B, $139M above estimates. By brand in Q1, Nordstrom banner sales increased 0.6% Y/Y, while Nordstrom Rack grew 13.8% in the quarter. Nordstrom Rack comparable store sales increased 7.9%. Q1 gross margin compressed 225 bps Y/Y to 31.6% due to timing matters, external theft, and inventory cleanup. JWN reaffirmed its full-year guidance even after the Q1 EPS miss. Although Nordstrom Rack is experiencing top-line growth, the company continues to underperform in gross and operating margin. We believe valuation is extended and do not believe Nordstrom Rack will drive margins higher over the next 12 months.

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