Nordstrom (JWN) 3Q16 Results: Results Exceed Expectations in 3Q

Executive Summary

• Nordstrom reported adjusted 3Q16 EPS of $0.84, ahead of the $0.52 consensus estimate, but down 52.5% year over year. Revenues were $3.54 billion, up 7.2% year over year and above the consensus estimate.
• Off-price apparel was the strongest category in the quarter, with net sales from Nordstrom Rack stores and Nordstromrack.com/HauteLook.com increasing by 10.1%. Comparable sales in the category increased by 3.9%.
• For fiscal year 2016, the company updated its sales guidance to 3.5% and its guidance for adjusted earnings per diluted share to $2.85–$2.95 to incorporate the upside from the third quarter.