On March 01, Nordstrom Inc. (JWN) declared its financial results for Q4 and fiscal 2021 along with the outlook for 2022. Consequently, the stock rallied in the after-hours on Tuesday.
It seems investors were unsure of the upcoming earnings as the stock traded heavily at 254% of the average volume. At 19.54 million shares, JWN stock declined by 5.79% as it fluctuated between $19.36 and $21.13. The stock closed the regular session at a value of $19.54 per share. Following the beat earnings, the stock rebounded in the after-hours to add 34.85%. Hence, JWN stock was trading at a value of $26.35 per share in the after-hours on Tuesday. The volume remained 5.91 million shares in the session.
The clothes, shoes, and accessories manufacturer, Nordstrom Inc. has a market capitalization of $3.3 billion. Its 159.31 million outstanding shares have declined by 13.62% year to date. The stock lost a value of 48.0% last year.
JWN’s Q4 2021 Highlights
In Q4 2021, the company had earnings of $200 million, against $33 million in the year-ago period. Therefore, the EPS was $1.23 on a diluted share basis in the fourth quarter of 2021.
Moreover, the company reported earnings before taxes (EBIT) of $299 million, which was 6.8% of the sales in Q4 2021.
JWN’s net sales saw an increase of 23% in Q4 2021, against the same period of the previous year.
Additionally, at the end of the year, the company had $1,1 billion in liquidity which included cash of $322 million.
Future Outlook
For fiscal 2022, the company expects revenue to grow by 5-7% YOY and an EBIT margin of 5-6% of sales.
Furthermore, the expected EPS for fiscal 2022 is $3.15 to $3.50. This excludes share repurchase activity impact.
Relocation of Nordstrom Rack
On January 31, the company announced the relocation plan of its Nordstrom Rack store within The Summit in Birmingham, AL. Managed by Bayer Properties, the 27,000 sq. ft. store is set to be opened in spring 2023.
In addition, the new location is part of a mixed-use shopping and entertainment destination including retail, restaurant, and office space.
The off-price retail division of JWN, Nordstrom Rack offers up to 70% off on apparel, accessories, beauty, home, and shoes from various brands to the customers.
Conclusion
On Tuesday, the company not only reported a beat Q4 but also an upbeat outlook for fiscal 2022. Thus, the results highly impressed the investors while they were gloomy before the earnings release. As a result, the JWN stock soared in the after-hours on Tuesday.
