Nordstrom, Inc. (JWN) has reported 11.67 percent rise in profit for the quarter ended Jan. 28, 2017. The company has earned $201 million, or $1.15 a share in the quarter, compared with $180 million, or $1 a share for the same period last year. On an adjusted basis, the company has earned $240 million, or $1.37 a share for the quarter. Revenue during the quarter went up marginally by 2.91 percent to $4,316 million from $4,194 million in the previous year period. Gross margin for the quarter expanded 136 basis points over the previous year period to 36.98 percent. Total expenses were 90.18 percent of quarterly revenues, down from 92.27 percent for the same period last year. This has led to an improvement of 210 basis points in operating margin to 9.82 percent.
Operating income for the quarter was $424 million, compared with $324 million in the previous year period.
Nordstrom, Inc. forecasts revenue to grow in the range of 3 percent to 4 percent for the fiscal year 2017. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $2.75 to $3.
Operating cash flow drops significantlyNordstrom, Inc. has generated cash of $1,648 million from operating activities during the year, down 32.76 percent or $803 million, when compared with the last year. The company has spent $791 million cash to meet investing activities during the year as against cash outgo of $144 million in the last year.
The company has spent $445 million cash to carry out financing activities during the year as against cash outgo of $2,539 million in the last year period.
Cash and cash equivalents stood at $1,007 million as on Jan. 28, 2017, up 69.24 percent or $412 million from $595 million on Jan. 30, 2016.
Working capital turns negative
Working capital of Nordstrom, Inc. has turned negative to $437 million on Jan. 28, 2017 from positive $103 million on Jan. 30, 2016. Current ratio was at 0.88 as on Jan. 28, 2017, down from 1.04 on Jan. 30, 2016.
Cash conversion cycle (CCC) has decreased to 11 days for the quarter from 13 days for the last year period. Days sales outstanding were almost stable at 2 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 32 days for the quarter compared with 33 days for the previous year period. At the same time, days payable outstanding was almost stable at 22 days for the quarter, when compared with the previous year period.
Debt comes down marginally
Nordstrom, Inc. has recorded a decline in total debt over the last one year. It stood at $2,774 million as on Jan. 28, 2017, down 1.11 percent or $31 million from $2,805 million on Jan. 30, 2016. Total debt was 35.30 percent of total assets as on Jan. 28, 2017, compared with 36.44 percent on Jan. 30, 2016. Debt to equity ratio was at 3.19 as on Jan. 28, 2017, down from 3.22 as on Jan. 30, 2016. Interest coverage ratio improved to 13.68 for the quarter from 10.80 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
