Nordstrom (JWN) swung to a net loss for the quarter ended Oct. 29, 2016. The company has made a net loss of $10 million, or $ 0.06 a share in the quarter, against a net profit of $81 million, or $0.42 a share in the last year period. On an adjusted basis, the company has earned $148 million, or $0.84 a share for the quarter. Revenue during the quarter grew 6.43 percent to $3,542 million from $3,328 million in the previous year period. Gross margin for the quarter expanded 53 basis points over the previous year period to 36.17 percent. Total expenses were 98.45 percent of quarterly revenues, up from 95.34 percent for the same period last year. That has resulted in a contraction of 310 basis points in operating margin to 1.55 percent.
Operating income for the quarter was $55 million, compared with $155 million in the previous year period.
For financial year 2016, the company forecasts diluted earnings per share to be in the range of $1.70 to $1.80.
Operating cash flow drops significantlyNordstrom has generated cash of $872 million from operating activities during the nine month period, down 50.03 percent or $873 million, when compared with the last year period. The company has spent $578 million cash to meet investing activities during the nine month period as against cash inflow of $69 million in the last year period
The company has spent $358 million cash to carry out financing activities during the nine month period as against cash outgo of $1,820 million in the last year period.
Cash and cash equivalents stood at $531 million as on Oct. 29, 2016, down 35.32 percent or $290 million from $821 million on Oct. 31, 2015.
Working capital drops significantly
Nordstrom has witnessed a decline in the working capital over the last year. It stood at $144 million as at Oct. 29, 2016, down 79.37 percent or $554 million from $698 million on Oct. 31, 2015. Current ratio was at 1.04 as on Oct. 29, 2016, down from 1.22 on Oct. 31, 2015.
Cash conversion cycle (CCC) has decreased to 20 days for the quarter from 63 days for the last year period. Days sales outstanding went down to 37 days for the quarter compared with 39 days for the same period last year.
Days inventory outstanding has decreased to 49 days for the quarter compared with 94 days for the previous year period. At the same time, days payable outstanding went down to 65 days for the quarter from 70 for the same period last year.
Debt comes down marginally
Nordstrom has recorded a decline in total debt over the last one year. It stood at $2,778 million as on Oct. 29, 2016, down 1.10 percent or $31 million from $2,809 million on Oct. 31, 2015. Total debt was 34.87 percent of total assets as on Oct. 29, 2016, compared with 32.72 percent on Oct. 31, 2015. Debt to equity ratio was at 3.23 as on Oct. 29, 2016, up from 2 as on Oct. 31, 2015. Interest coverage ratio deteriorated to 1.83 for the quarter from 5.17 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: editor@irisindia.net
