• Earnings Per Share (EPS) of $0.28 exceeds the estimate of $0.22, illustrating Nordstrom’s success in beating expectations.
• Even with a revenue shortfall, Nordstrom reported a 4.3% year-over-year increase, totaling around $3.46 billion.
• The company’s dedication to popular brands and operational efficiency keeps its gross profit margin steady, despite challenges.

Nordstrom, Inc. is recognized as a key player in the fashion retail sector, operating a hybrid of high-end department stores since its inception in 1901. The company offers a diverse range of merchandise, including apparel, shoes, cosmetics, and accessories.

On November 26, 2024, Nordstrom announced earnings per share (EPS) of $0.28, outpacing the anticipated $0.22. This highlights the company’s strong profitability and effective cost management.

The projected revenue reached about $3.46 billion, though this fell short of estimates predicting $4.27 billion. This figure still showcases a 4.3% increase from the previous year. The revenue figure exceeded the Zacks Consensus Estimate of $3.33 billion, leading to a positive surprise of 3.99%, evidencing Nordstrom’s prowess in attracting consumers.

The company’s success stemmed from heightened consumer interest in renowned brands such as On Running, Hoka, and Vuori, available in its stores. Nordstrom’s ability to sustain a steady gross profit margin, despite rising costs, demonstrates its operational efficiency, though managing operating expenses remains an ongoing concern.

Nordstrom’s financial health can be illustrated by a price-to-earnings (P/E) ratio of around 11.47 and a price-to-sales ratio of about 0.27, indicating the market applies relatively low valuations to its earnings and sales. Notably, the enterprise value to sales ratio stands at approximately 0.35, while the enterprise value to operating cash flow ratio is about 6.03, hinting at how the market values the company’s cash flow production. Lastly, the company’s debt-to-equity ratio is near 1.72, reflecting a strong reliance on leveraged financing, while the current ratio hovers around 1.14, indicating Nordstrom’s capacity to meet short-term obligations.