Executive Summary

• Nordstrom reported 2Q19 revenues of $3.87 billion, down 5.1% year over year and below the consensus estimate of $3.92 billion. The company’s earnings per share (EPS) declined 5.3% year over year to $0.90, beating the consensus estimate of $0.76.
• Nordstrom comps decreased by 5.1% compared to consensus of down 3.5%. By category, full price declined 6.5% compared to consensus of down 5.0%. Off-price decreased by 1.3%, in line with the consensus estimate.
• The company lowered its 2019 guidance and now expects a net sales decline of 2%, versus the prior guidance of a net sales decline of 2% to flat. Nordstrom lowered the top end of its EPS guidance from $3.65 to $3.50, for a guidance range of $3.25 to $3.50.