Nordstrom (JWN) Misses Q4 EPS by 3c, FY15 EPS Guidance Misses

Nordstrom (NYSE: JWN) reported Q4 EPS of $1.32, $0.03 worse than the analyst estimate of $1.35. Revenue for the quarter came in at $3.9 billion versus the consensus estimate of $4.01 billion.

Nordstrom comparable sales, which consist of the full-line and Nordstrom.com businesses, increased 4.5 percent. Top-performing merchandise categories included Cosmetics, Accessories and Men's Apparel.

Nordstrom sees FY2015 EPS of $3.65 - $3.80, versus the consensus of $4.11.

FISCAL YEAR 2015 OUTLOOK

In 2015, Nordstrom plans to continue to invest and build upon its foundation for achieving sustainable growth in sales, earnings and ROIC. The outlook incorporates the impact of the following growth initiatives:

• The Company expects its ongoing expansion into Canada to continue to be dilutive to earnings due to infrastructure and pre-opening costs. The estimated loss before interest and taxes for Canada is expected to be approximately $60 million in fiscal 2015, compared with a loss before interest and taxes of $32 million in fiscal 2014.
• The Company estimates $30 million in expenses associated with initiatives to enable growth, including an additional fulfillment center and an expansion of the Nordstrom Rewards loyalty program, both planned in the second half of 2015.
• The Company expects an estimated loss before interest and taxes of approximately $30 million related to Trunk Club, compared with a loss before interest and taxes of approximately $25 million in fiscal 2014.

The Company's expectations for fiscal 2015 are as follows:

The Company's outlook also incorporates the following assumptions:

For earnings history and earnings-related data on Nordstrom (JWN) click here.

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