Insiders are closely watching Nordstrom Inc., which is scheduled to release its second-quarter earnings results after tomorrow’s opening bell.
The Seattle-based company’s stock has been under pressure in recent months following a disappointing Q1 report that sent shares down 11%. (On May 21, Nordstrom posted adjusted profits of 23 cents per share on revenues of $3.44 billion.) This Q2, analysts are expecting earnings per share of 75 cents on revenues of $3.93 billion, with Wall Street estimating an annual sales decline of 3.4%.
The upcoming report marks a pivotal quarter for the retailer as it prepares for the opening of its first Manhattan flagship in October. Nordstrom’s New York women’s store comes at a time when many retailers are downsizing their brick-and-mortar footprints as skyrocketing rents and a broader shift to e-commerce continue to change the face of businesses.
However, in an interview with FN last summer, president of stores Jamie Nordstrom explained the company’s seemingly risky bet. “We’re not economists; we’re retailers. We know what’s durable, which is great product and great service,” he said. “And if we keep that as our focus — giving the customer a great value, being relevant to what they’re looking for and how they want to shop — then we’ll be successful.”
The Nordstrom family has also reportedly been working on a proposal to raise its stake in the department store chain to more than half. The group currently owns 31.2% of the firm and seeks to increase its ownership to upwards of 50% in an effort to tighten its grip on the family business.
Despite a failed go-private attempt last year as well as some unevenness in its business over the past couple years, Nordstrom had mostly outperformed many of its peers amid a supposed retail apocalypse and wider industry disruption that peaked around 2017.
The firm has also been lauded for its innovative concepts and omnichannel savvy — including its buy online, pick up in store (BOPIS) service, revamped loyalty program and experiential store offerings — amid a challenging season for the retail sector.
Department stores, in particular, have made headlines in the recent week following a stock sell-off on Wednesday that marked the worst trading day of the year. (This week, major brick-and-mortar mainstays — including Kohl’s, Target and Ross — have either reported or expect to report financial results.)
As of 3:00 p.m. ET, Nordstrom’s stock was down 2.95% to $25.33.
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