Barclays Maintains an 'Equalweight' on Nordstrom (JWN); Review of 3Q11
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Price: $24.66 --0%
Rating Summary:
4 Buy, 30 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 30 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Equalweight' on Nordstrom (NYSE: JWN) price target raised from $48 to $52.
Barclays analyst says, "Nordstrom reported 3Q11 EPS increased 10.4% to $0.59, $0.01 above our estimate: Sales in the quarter increased 14.2% to $2.38 B and comps increased 7.2%. The full-line and Direct businesses posted comps up 8.5%, and Nordstrom Rack comps were up 6.8%. The HauteLook unit is expected to add $150 - $160 mm in revenues in 2011...Gross margins increased 40 bps to 36.6%: The gross margin improvement was driven primarily by leverage of buying and occupancy expenses in the quarter. Merchandise margins were largely flat, and the company noted that it has not seen a material impact from product cost inflation on gross margin. Free shipping and free returns negatively impacted gross margin by (15) basis points in 3Q, but arguably helped fuel online sales growth of over 30% in the quarter. The company believes it can maintain sustainable online growth between 20%-30% over the long term."
"Given momentum in the top line and potential benefits from ongoing initiatives, we are maintaining our 2011 EPS estimate of $3.12 and increasing our 2012 estimate to $3.60 from $3.55."
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 $49.62 yesterday.
Barclays analyst says, "Nordstrom reported 3Q11 EPS increased 10.4% to $0.59, $0.01 above our estimate: Sales in the quarter increased 14.2% to $2.38 B and comps increased 7.2%. The full-line and Direct businesses posted comps up 8.5%, and Nordstrom Rack comps were up 6.8%. The HauteLook unit is expected to add $150 - $160 mm in revenues in 2011...Gross margins increased 40 bps to 36.6%: The gross margin improvement was driven primarily by leverage of buying and occupancy expenses in the quarter. Merchandise margins were largely flat, and the company noted that it has not seen a material impact from product cost inflation on gross margin. Free shipping and free returns negatively impacted gross margin by (15) basis points in 3Q, but arguably helped fuel online sales growth of over 30% in the quarter. The company believes it can maintain sustainable online growth between 20%-30% over the long term."
"Given momentum in the top line and potential benefits from ongoing initiatives, we are maintaining our 2011 EPS estimate of $3.12 and increasing our 2012 estimate to $3.60 from $3.55."
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 $49.62 yesterday.
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