Executive Summary

• Nordstrom reported 3Q18 revenues of $3.65 billion, up 3.0% year over year and below the consensus estimate of $3.7 billion.Diluted EPS was $0.67,flat compared to the year-ago quarter and $0.01 above the consensus estimate of $0.66.
• Comparable sales increased 2.3% in the quarter compared with the year-ago quarter and above the consensus estimate of 2.2%. By category, full price increased 0.4%, below the consensus estimate of 1.6%while off price increased 5.8%, ahead of the consensus estimate of 2.5%.
• Nordstromraised its full-year earnings guidance per share and now expects adjusted EPS of$3.55–$3.65, in line with the consensus estimate of $3.61 and up from the previous guidance of $3.50–$3.65.For the full year, the company expectstotal net sales to be $15.5–$15.6 billion, an increase from prior guidance of $15.4–$15.5 billion. The consensus estimate is $15.91 billion. Comparable sales are expected to be 2%, up from the prior guidance of 1.5%–2.0%.