Proactive Investors - Nordstrom, Inc. (NYSE:JWN) shares had tumbled over 9% in pre-market trading on Wednesday after weak profit guidance was issued overnight, which overshadowed a stronger-than-expected performance during the holiday quarter.
The embattled department store company said it expects to report earnings per share (EPS) in the range of $1.65 to $2.05 for fiscal 2024, below Wall Street estimates of $2.07.
On a positive note, the retailer’s fiscal fourth quarter and full year 2023 performance was better than expected, reflecting a strong holiday quarter.
For the fourth quarter ended February 3, 2024, Nordstrom’s net sales increased 2.2% year-over-year to $4.42 billion, slightly ahead of the $4.4 billion expected.
EPS increased from $0.74 in the year-ago quarter to $0.96, ahead of estimates of $0.90.
For full-year 2023, EPS of $2.12 on revenue of $14.7 billion were ahead of expectations of $2.07 and $14.6 billion, respectively.
"We delivered on our 2023 guidance and are confident in our expectations for continued sales improvement and sustained profitability in 2024," CEO Erik Nordstrom said in a statement.
Nordstrom shares traded 9.6% lower at about $19 after Tuesday’s closing bell in New York.