Shares of the fashion retailer Nordstrom Inc. (JWN) rose 2.68 percent to $29.52 on Thursday. Despite the COVID-19 pandemic, department store chain owner is demonstrating market resilience. The business may be among those which can rapidly restore profits after the start of mass vaccination and the resumption of market activity.
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Nordstrom issued a third quarter results last week in which overall revenues were still down by 16 percent year-on-year. Revenue of $3.09 billion, however, was almost exactly in line with the predictions of Wall Street. At the same time digital revenues, which rose by 37 percent year-on-year to $1.6 billion, generated more than half of the revenue.
Owing to deleveraging and reduced revenue rates, Nordstrom’s gross margin declined from 34.3 percent to 32.8 percent. However the company was able to make a profit of $0.34 per share because of a 20 percent drop in operating costs. This is more than half of the amount for last year, but above the $0.06 loss per share that Wall Street had expected.
Nordstrom’s management plans to further cut revenue by up to 20 percent in the fourth quarter. Due to promotional expenses and extra surcharges for distribution on public holidays, the profit margin will be reduced. However, overall, the situation in Nordstrom Department stores is better than the gloomy predictions. This illustrates the versatility of the company’s business and the ability to adapt to challenging circumstances. That is why Wall Street believes that after the mass vaccination, Nordstrom Inc. (JWN) will recover faster than competitors.
Also on Thursday, Chevron Corporation (CVX) shares slipped 0.08 percent to $89.80 on Thursday despite the positive dynamics of oil sector on the day. The oil company, which stands among largest oil companies of the United States, has substantially decreased its 2021 capital investment plan and reduced its expenditure budget for the period up to and including 2025.