The buying habits of fashionistas are in full swing, according to analysts, who say this is a good thing for Nordstrom stock as consumers look to buy more clothes to fit their post-Covid-19 lifestyles.
“More customers are shopping for social events, travel and return to the office and when exposed to the high-end, more insulated consumer from the effects of inflation,” Jefferies analyst Stephanie Wiesink wrote in a research note Wednesday. JWN is in good shape.”
“We are highly encouraged by the direction and degree of improvement; given that the thesis is fit and started, we are looking for a series of quarters to justify a higher assessment and anticipate potential upside.” for growth and margin uplift,” she said.
The stock (ticker: JWN) was up 6% in premarket trading to $21.81 after the department store dropped its financial forecasts for the second time this year. Shares are down 13% so far, while the S&P 500 is down 17%.
For the full year, Nordstrom now expects total revenue growth, which includes retail sales and credit-card revenue, to be up 6% to 8% from last year, up from a range of 5% to 7% growth last year. Is. It expects adjusted earnings per share of $3.20 to $3.50, up from a prior expectation of $3.15 to $3.50, up from the $3.11 consensus estimate.
Wissink rated the stock as a hold with a price target of $22. Although she was overly excited by the company’s news, she said she is looking for a series of quarters that show strong growth and margin uplift to justify a higher valuation and anticipate upside potential.
company was a baron’s Pick up the stock earlier this year. Other analysts seem to have similar optimism for semi-luxury clothing going forward.
“We believe Nordstrom is positioned to gain share and drive profitable growth as consumers resume activities including social events, travel and return to work. We note the business challenges to this dynamic environment, But we believe the fashion categories should do well in reopening,” wrote Guggenheim analyst Robert Drubul in a research note. He rates the stock neutral with an undisclosed price target.
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Credit: www.marketwatch.com /