Research Desk Line-up: Ross Stores Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 22, 2017 /Pro-Trader Daily has just published a free post-earnings coverage on Nordstrom, Inc. (NYSE: JWN), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=JWN, following the Company's announcement of its second quarter fiscal 2017 operating results on August 10, 2017. The department store operator reported a y-o-y gain in sales and increased its EBIT forecast for the fiscal year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
Get more of our free earnings reports coverage from other constituents of the Apparel Stores industry. Pro-TD has currently selected Ross Stores, Inc. (NASDAQ: ROST) for due-diligence and potential coverage as the Company reported on August 17, 2017, its financial results for Q2 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on Ross Stores when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on JWN; also brushing on ROST. With the links below you can directly download the report of your stock of interest free of charge at:
For the second quarter ended July 29, 2017, Nordstrom reported total revenue of $3.79 billion up 3.8% compared with total revenues of $3.65 billion during Q2 2016. Total Company comparable sales for the reported quarter increased 1.7% on a y-o-y basis. Nordstrom's revenue number exceeded analysts' expectations of $3.73 billion
In the Nordstrom Rack brand, which consists of Nordstrom Rack stores and Nordstromrack.com/HauteLook, net sales increased 9.8% and comparable sales increased 3.1%.
For Q2 2017, Nordstrom's retail gross profit, as a percentage of net sales, of 34.1% decreased 25 basis points compared to Q2 2016. This primarily reflected higher occupancy expenses related to new store growth for Nordstrom Rack and Canada in addition to higher loyalty expenses during the Anniversary Sale. This was partially offset by improved merchandise margins, reflecting the continued strength in regular price selling.
Nordstrom's net earnings were $110 million, or $0.65 per diluted share, and earnings before interest and taxes ("EBIT") were $217 million, or 5.8% of net sales, in Q2 2017 compared to net earnings of $117 million, or $0.67 per diluted share, and EBIT of $221 million, or 6.1%, during Q2 2016. The Company's earnings topped Wall Street's expectations of $0.62 per share.
Nordstrom's Retail EBIT decreased $27 million on a y-o-y basis, primarily reflecting planned technology, occupancy, and supply chain expenses supporting the Company's growth initiatives. The Company's credit EBIT increased $23 million through the strategic partnership with TD Bank. Nordstrom's credit card revenues increased 30%, which included a reduction in amortization expenses of $5 million related to the sale of the credit card portfolio in October 2015.
In the Nordstrom brand, including US and Canada full-line stores and Nordstrom.com, net sales when combined with Trunk Club, increased 2.4% and comparable sales increased 1.4%.
The Company delivered online sales growth of 20% at Nordstrom.com, reflecting its largest volume day in its history, and 27% at Nordstromrack.com/HauteLook.
Nordstrom had 9.4 million active rewards customers in the US and Canada, up approximately 50%, from 6.2 million a year ago. Sales from Nordstrom Rewards customers represented 56% of Q2 2017 sales compared to 48% in Q2 2016.
To date in fiscal 2017, Nordstrom opened six Nordstrom Rack stores and closed one full-line store.
Return on invested capital ("ROIC") for the 12 fiscal months ended July 29, 2017, was 8.9% compared with 9.1% in the prior 12-month period. Results for the current period were negatively impacted by approximately 310 basis points due to the Trunk Club non-cash goodwill impairment charge in Q3 2016.
For FY17, Nordstrom is forecasting net sales growth of 4%. The Company raised its forecast for retail EBIT to be in the range of $790 million to $840 million from the previous announcement of $780 million to $840 million and credit EBIT to be approximately $145 million compared to the previous announcement of approximately $140 million. The Company's 53rd week is expected to add approximately $200 million to total net sales and approximately $0.02 to $0.03 to earnings per diluted share.
Nordstrom's share price finished yesterday's trading session at $43.77, dropping 1.26%. A total volume of 1.66 million shares have exchanged hands. The Company's stock price advanced 4.12% in the last three months. Shares of the Company have a PE ratio of 20.72 and have a dividend yield of 3.38%. The stock currently has a market cap of $7.29 billion.
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