Nordstrom stock rockets higher after earnings beat, increase in annual forecast
Nordstrom Inc. (JWN) shares jumped more than 20% at times in after-hours trading Tuesday after the retailer reported an unexpected profit and improving sales amid difficulties for rivals. Nordstrom reported first-quarter profit of $20 million, or 13 cents a share, up from a loss a year ago and amid analyst expectations for a loss this year. The company did post an adjusted loss of 6 cents a share, mostly related to an impairment charge related to a Trunk Club property. Sales improved to $3.47 billion from $2.92 billion a year ago, and also topped expectations. Analysts on average expected Nordstrom to report a loss of 5 cents a share on sales of $3.29 billion, according to FactSet. Executives also increased their annual forecast, now expecting sales growth of 6% to 8%, up from 5% to 7% previously, and earnings of $3.38 to $3.68 a share, after previously stating $3.15 to $3.50 a share. Shares rose as much as more than 20%, and were bouncing around between 10% and 20% higher in the extended session Tuesday afternoon. The stock has held up amid carnage for many retail clothing chains, falling just 7.5% so far this year as the S&P 500 index has declined 16.1%.
-Jeremy C. Owens
(END) Dow Jones Newswires
May 24, 2022 16:18 ET (20:18 GMT)
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