Nordstrom Gears Up for Q4 Earnings: Will Investors See a Surprise?

Nordstrom, Inc. JWN is expected to report a decline in both top and bottom lines when it reports its fourth-quarter fiscal 2024 results on March 4, after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $4.29 billion, which indicates a decline of 2.9% from the prior-year reported figure.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Nordstrom, Inc. Price, Consensus and EPS Surprise Nordstrom, Inc. price-consensus-eps-surprise-chart | Nordstrom, Inc. QuoteThe consensus mark for earnings has decreased by a penny in the past seven days to 90 cents per share, indicating a decline of 6.3% from 96 cents reported in the year-ago period.In the last reported quarter, the company surpassed earnings estimates by 43.5%. Nordstrom has delivered a trailing four-quarter negative earnings surprise of 30.03%, on average.Earnings Whispers for JWN StockOur proven model conclusively predicts an earnings beat for Nordstrom this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they are reported with our Earnings ESP Filter.Nordstrom has an Earnings ESP of +14.99% and a Zacks Rank of 2 at present.Factors to Consider Ahead of JWN’s Upcoming ResultsNordstrom has been enhancing its digital capabilities to drive growth and improve customer engagement. The company continues to leverage technology to optimize operations, refine inventory management and create seamless shopping experiences. These initiatives are expected to aid performance in the to-be-reported quarter.Additionally, Nordstrom’s fourth-quarter results are expected to reflect gains from its digital-first approach to better serve customers, expand market share and achieve profitable growth.The holiday season is a crucial selling period for retailers across the world. In January 2025, Nordstrom reported strong results for the holiday season, reflecting a total company net sales increase of 4.9% and a comparable sales increase of 5.8% for the nine-week holiday period ending Jan. 4, 2025. The robust holiday results exceeded the company's cautious expectations, driven by increased consumer engagement and successful sales strategies during the holiday season.Based on the stronger-than-anticipated holiday shopping performance across its stores and online platforms, JWN has raised its fiscal 2024 sales outlook. The revised fiscal 2024 also suggests stronger revenue performance in the fourth quarter, driven by better-than-expected holiday sales and momentum across its store banners and digital platforms.The company expects revenue growth of 1.5% to 2.5% for fiscal 2024, including retail sales and credit card revenues. Revenues for the Nordstrom Rack banner are projected to grow 7.6% year over year, offsetting the expected decline of 0.9% for the Nordstrom banners. However, the company expects the absence of the 53rd week this year to hurt the top line by 135 basis points.Our model predicts revenues to decline 5.3% year over year at Nordstrom and remain flat year over year at Nordstrom Rack in the fourth quarter. For fiscal 2024, revenues are expected to decline 0.9% at Nordstrom and improve 7.6% at Nordstrom Rack.For fiscal 2024, the company expects comparable sales growth of 2.5-3.5% versus the 52 weeks in fiscal 2023, compared with its prior outlook of 1% to 2% growth.Nordstrom has been making efforts to enhance customer experience through faster delivery. Hence, the company remains focused on operational optimization. JWN continues seeking additional efficiencies in flow and improved productivity through inventory management initiatives. These upsides are likely to have aided fourth quarter results.However, Nordstrom has been facing ongoing challenges such as competitive pressures, high operating costs, inflation and evolving consumer spending trends. The company has been experiencing elevated selling, general and administrative (SG&A) expenses in recent quarters, primarily driven by higher labor costs and a charge related to accelerated technology depreciation. The elevated SG&A expenses are expected to have slightly weighed on margins in the to-be-reported quarter.JWN’s Price Performance & ValuationJWN shares have exhibited an uptrend, increasing as much as 10.5% in the past six months. The stock has outperformed the broader industry’s growth of 4%.From a valuation standpoint, JWN offers an attractive opportunity, trading at a discount relative to historical and industry benchmarks. With a forward 12-month price-to-earnings of 12.05x, the industry’s average of 18.32x, the stock offers compelling value for investors seeking exposure to the sector.JWN Stock's Performance in the Past Six MonthImage Source: Zacks Investment ResearchStocks With Favorable CombinationAbercrombie & Fitch ANF currently has an Earnings ESP of +0.59% and a Zacks Rank of 3. The company is likely to register growth in its top and bottom lines when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.6 billion, which indicates an increase of 7.8% from the figure reported in the prior-year quarter.You can the complete list of today’s Zacks #1 Rank stocks hereThe Zacks Consensus Estimate for ANF’s EPS is pegged at $3.49, suggesting an increase of 17.5% from the year-ago quarter’s reported figure. The consensus mark for earnings has moved down 0.6% in the past seven days. ANF has delivered a trailing four-quarter earnings surprise of 14.8%, on average.DICK'S Sporting Goods, Inc. DKS currently has an Earnings ESP of +0.98% and a Zacks Rank of 2. DKS is expected to have reported a decline in its top and bottom lines when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.75 billion, which indicates a 3.3% decrease from the figure reported in the year-ago quarter.The consensus estimate for DICK'S fiscal fourth-quarter earnings is pegged at $3.47 per share, down 9.9% from the year-ago quarter. The consensus mark for earnings has moved up 0.6% in the past 30 days. DKS has delivered a trailing four-quarter earnings surprise of 11.4%, on average.Ulta Beauty, Inc. ULTA has an Earnings ESP of +1.62% and a Zacks Rank of 2 at present. ULTA is likely to have registered a decline in its top and bottom lines when it reports fourth-quarter fiscal 2024 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $3.46 billion, which indicates a 2.6% decline from the figure reported in the year-ago quarter.The consensus estimate for Ulta Beauty’s fourth-quarter earnings is pegged at $7.06 per share, indicating a 12.6% decline from the figure reported in the year-ago quarter. The consensus mark for earnings has moved down by a penny in the past 30 days. ULTA has delivered an earnings beat of 6.2%, on average, in the trailing four quarters.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report Nordstrom, Inc. (JWN): Free Stock Analysis Report DICK'S Sporting Goods, Inc. (DKS): Free Stock Analysis Report Ulta Beauty Inc. (ULTA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks