Nordstrom Inc. surprises investors by reporting a profit for Q3, shares up
The company earned $53 million, or 34 cents per share, contrary to a loss of 13 cents per share forecasted by analysts.
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Staff or Guest writer for The Dog of Wall Street.
2020-11-25 08:56

Nordstrom Inc. (JWN) shares jumped more than 5 percent in the pre-market trading Wednesday after the luxury department store chain surprised analysts and investors by reporting a profit for the third quarter. However, its revenue fell short of consensus estimates.

Nordstrom Inc. surprises investors by reporting a profit for Q3, shares up

The Seattle, Washington-based company said that it earned $53 million, or 34 cents per share for the three months ended October 31, as compared to a profit of $126 million, or 81 cents per share in the comparable period last year. Analysts on average had projected a loss of 13 cents per share.

Revenue for the quarter declined $3.09 billion, versus $3.67 billion in the year-ago quarter, while missing the consensus forecast of $3.13 billion.

Speaking on the quarterly performance, CEO Erik Nordstrom said “our ability to significantly strengthen our financial flexibility early in the pandemic was key to delivering operating profitability of more than $100 million and cash flow of more than $150 million in the third quarter."

Digital sales for the quarter came in at $1.6 billion, accounting for 54 percent of the total revenue, as pandemic drove the online sales.

Nordstrom (NYSE: JWN) stock is trading higher in the pre-market trading today, extending its Tuesday rally when it ended the day at $24.55 after rising 4.74 percent. The 52-week range of the stock is $11.72-$43.37, while its market capitalization stands at $3.858 billion.

JWN stock has mostly traded under a price of $15 between September and October. However, the stock managed to rise above the $20 price level last week, just ahead of its earnings report. Overall, JWN stock has lost nearly half its value following the pandemic. The stock has plummeted nearly 40 percent on a year-to-date basis.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

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2020-11-25 08:56

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