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.
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.
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