Nordstrom (JWN): Raising Estimates on Strong Anniversary Sale - Piper Jaffray

August 9, 2016 7:28 AM EDT
Get Alerts JWN Hot Sheet
Price: $54.13 +1.92%

Rating Summary:
    13 Buy, 18 Hold, 4 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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Piper Jaffray analyst, Neely Tamminga, reiterated her Overweight rating on shares of Nordstrom (NYSE: JWN) and raised her price target to $56 after seeing continued signs of accelerating trends from Nordstrom's Anniversary Sale event which ended on August 7. The company is also heading into a period of easy comps and the potential for improved trends after a difficult Spring.

At the end of the Anniversary Sale, sell-through rates tracking well ahead of LY and four-year average; denim demonstrating strength. In monitoring sell-through rates of the 529 items in the early-access catalog, the analyst noted combined sell-outs and high sell-through rates are 31% versus 20% LY. From a category perspective, 13 of the 38 denim styles offered (34%) have sold out or demonstrated high sell-through rates; this is up from 17% LY.

The anniversary sale also shifts some revenue into 2Q since the timing of the sale has changed this year driving the analyst to raise her EPS estimate for FQ2 to $0.60 vs. the prior $0.50 and consensus of $0.56. The PT goes to $56 from $53 based on an unchanged 8x FY17E EV/EBITDA multiple..

For an analyst ratings summary and ratings history on Nordstrom click here. For more ratings news on Nordstrom click here.

Shares of Nordstrom closed at $44.77 yesterday.

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