Nordstrom Reports Q2 Beat, But Shares Plunge 14% on 2022 Guidance Cut
2022.08.24 01:06
Nordstrom Reports Q2 Beat, But Shares Plunge 14% on 2022 Guidance Cut
By Davit Kirakosyan
Nordstrom (NYSE:JWN) shares plummeted more than 14% after-hours following the company’s reported Q2 results and 2022 guidance cut.
Q2 EPS came in at $0.81, better than the consensus estimate of $0.80. Revenue grew 12% year-over-year to $3.99 billion, compared to the consensus estimate of $3.96 billion. Gross merchandise value (GMV) increased 12.2% year over year.
“While our quarterly results were consistent with our previous outlook, customer traffic and demand decelerated significantly beginning in late June, predominantly at Nordstrom Rack. We are adjusting our plans and taking action to navigate this dynamic in the short term, including aligning inventory and expenses to recent trends, and we remain confident in our ability to deliver on our long-term strategic and financial goals,” said Erik Nordstrom, chief executive officer of Nordstrom, Inc.
The company lowered its full 2022-year outlook, expecting EPS to be in the range of $2.30-$2.60 (vs. $3.20-$3.50 prior), compared to the consensus estimate of $3.05. Full-year revenue growth is expected in the range of 5-7% (vs. 6-8% prior).
