Nordstrom, Inc. (NYSE:JWN) Third-Quarter Fiscal 2024 Earnings Preview

• Wall Street and Zacks Consensus Estimate predict an EPS of $0.22 and $0.23 respectively, indicating an 8% decline year-over-year.
• Revenue is projected to slightly increase by 0.3% from the same quarter last year, with strategic expansions and digital enhancements driving growth.
• Financial metrics reveal a P/E ratio of 13.43, a price-to-sales ratio of 0.25, and a debt-to-equity ratio of 3.02, highlighting Nordstrom's market valuation and financial health.

Nordstrom, Inc. (NYSE:JWN) is a leading fashion retailer known for its upscale department stores and Nordstrom Rack outlets. The company focuses on providing high-quality apparel, shoes, and accessories. Nordstrom competes with other major retailers like Macy's and Saks Fifth Avenue. The company is set to release its third-quarter fiscal 2024 earnings on November 26, 2024.

Wall Street estimates Nordstrom's earnings per share (EPS) to be $0.22, while the Zacks Consensus Estimate predicts $0.23 per share. This reflects an 8% decline from the previous year. Despite this, the earnings estimate has been revised upward by 1.9% over the past month, indicating a positive reassessment by analysts.

Revenue projections for Nordstrom are approximately $3.35 billion, with the Zacks Consensus Estimate slightly lower at $3.33 billion. This marks a 0.3% increase from the same quarter last year. The company's strategic initiatives, such as expanding Nordstrom Rack and enhancing digital capabilities, are expected to support this revenue growth.

Nordstrom's financial metrics reveal a price-to-earnings (P/E) ratio of 13.43, indicating the market's valuation of its earnings. The price-to-sales ratio is 0.25, suggesting a relatively low market valuation compared to its sales. The enterprise value to sales ratio is 0.49, showing that Nordstrom's enterprise value is less than half of its total sales.

The company's debt-to-equity ratio is notably high at 3.02, indicating significant reliance on debt financing. The current ratio is 1.07, suggesting that Nordstrom has a slightly higher level of current assets compared to its current liabilities. These financial metrics provide insight into Nordstrom's financial health and market valuation.