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Should You Scoop Up Shares of Nordstrom on its Post Earnings Dip? -Breaking


© Reuters. Do You Need to Buy Nordstrom Shares on the Post Earnings Dip

Nordstrom, an omnichannel retailer of fashion and home goods (NYSE:), saw its shares drop nearly 30% after it reported third-quarter results that were lower than expected. But can the stock rebound based on the company’s numerous strategic collaborations? Let’s find out.Leading fashion retailer Nordstrom, Inc. (JWN) operates 100 full-line stores and 248 Nordstrom Rack locations in 40 U.S. states and Canada, two clearance stores, five Nordstrom Local service hubs, and online stores. The stock of the Seattle, Wash.-based concern has declined 21.6% in price over the past month to close yesterday’s trading session at $22.53. Additionally, the stock lost 29.8% in the past month since the company’s November 23rd report on weaker than expected earnings for the third quarter.

JWN’s total revenues came in at $3.64 billion for its fiscal third quarter ended October 30, 2021, up 17.7% year-over-year. The company’s net earnings came in at $64 million, versus $53 million in the year-ago period. Nordstrom Rack’s net sales decreased by 8% in the third quarter. Its digital sales also declined by 12% year-overyear.

The timing of this year’s Anniversary Sale, with approximately one week of the sale falling in its third quarter of 2021, had a positive impact to the tune of approximately 200 basis points on JWN’s net sales compared with its fiscal 2019. Cowen analysts lowered the price target for JWN on November 24, however. Labaton Sucharow disclosed on November 29 that they are investigating possible securities violations and breach of fiduciary obligation claims against the company. Furthermore, hedge hedge funds’ interest in the stock has recently declined. So, JWN’s near-term prospects look uncertain.

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