Nordstrom JWN Earnings Analysis

Earnings Analysis for Nordstrom (JWN)

Revenue Analysis:

Total and Operating Revenue: JWN’s Total Revenue showed a declining trend in the given data. It decreased from $4.42 billion in 2024-01-31 to $3.32 billion in 2023-10-31, and previously was $3.77 billion in 2023-07-31, and $3.18 billion in 2023-04-30. Operating Revenue tracked Total Revenue closely, indicating that the major portion of revenue is from its core operations.

Gross Profit Margin: Gross profit followed similar trends as revenue, peaking at $1.605 billion in 2024, with margins showing a slight decline in some periods but largely remaining substantial enough to cover operating expenses.

Cost Management:

Cost of Revenue: Cost of Revenue was highest at $2.815 billion in the latest period of 2024-01-31, compared to $2.08 billion in 2023-10-31, indicating fluctuating procurement or manufacturing costs over the periods.

Operating Expense: Operating Expenses showed significant fluctuations, being $1.389 billion in 2024-01-31 and showed varied levels in prior periods.

Total Expenses: Similar to operating expenses, total expenses were highest in the latest period, $4.204 billion, showing a varied trend along with changes in operational scale and scope.

Profitability Analysis:

EBITDA: EBITDA was at its highest at $457 million in 2024-01-31, with preceding periods showing lower values. This suggests varying levels of operating profitability over time.

Operating Income: Operating Income also followed a similar pattern, peaking in the latest period at $216 million, compared to $77 million in 2023-10-31.

Pretax Income and Net Income: Pretax Income showed improvement in the latest period at $190 million. Net Income was $134 million in 2024-01-31, showcasing recovery from negative figures seen in earlier periods.

Cash Flow Indicators:

Reconciled Depreciation: Depreciation costs appear significant, indicating substantial investment in assets. The costs ranged from $184 million to $208 million across the periods.

Interest Expense: Interest expenses remained consistent across periods, signifying potential stable debt levels or effective interest management with minimal fluctuations.

Taxation:

Tax Rate: The tax rate fluctuated, affecting net income, with a notably different rate in 2023-10-31 at 0.142 compared to 0.294737 in 2024-01-31. Tax Provision directly influenced net income after taxes.

Tax Effect of Unusual Items: Significant effects were observed only in some quarters, impacting the effective tax provision and reflecting non-recurring events.

Shareholder Metrics:

Diluted and Basic EPS: Earnings per share figures demonstrated a mix of performances, with significant downturns in periods like 2023-04-30 at -1.27 per share, reflecting the critical impacts of unusual items and business challenges.

Average Shares: The average shares outstanding remained relatively stable, contributing to a consistent shareholder base despite financial variability.

Net Income Available to Common Stockholders: This metric has recovered well in recent periods, indicating possible positive outcomes for shareholders if trends continue.

Conclusion:

While JWN has experienced fluctuations in its financial performance, recent periods suggest a stabilization and potential recovery in key areas like net income and operating margins. Continual optimization in cost management and maintaining robust gross profit margins are advisable for sustaining long-term profitability. Further, stabilization in unusual costs and tax adjustments will enhance predictability and financial health.