Noah Zatzkin - The Great Stock Market Invester

1. Noah Zatzkin- The Great Stock Market Invester WEBSITE :- https://www.wallstreetzen.com/analysts/noah-zatzkin

2. Noah Zatzkin – Market Analyst • KeyBanc Capital Markets analyst Noah Zatzkinwas probably thinking about high inflation when he warned, “While we continue to think the higher income profile of Nordstrom’s average customer positions the company well in the current environment, clearly Nordstrom is not immune to the difficult macro backdrop.” • Thus, even if Nordstrom’s customers are generally in the upper range of the middle-class income spectrum, high inflation is bound to have an impact on their shopping habits and, therefore, on Nordstrom’s top and bottom lines.

3. Nordstrom’s Delivered Good Q2 Results, but Don’t Jump to Conclusions • After Nordstrom’s posted its second-quarter 2022 financial results, bullish-leaning investors had an opportunity to say that the company beat analysts’ revenue forecasts. That’s fine, but there’s more to the story. Jumping to hasty conclusions after quickly skimming over the headlines could lead to unfortunate investing decisions, especially when it comes to Nordstrom stock. • The company’s top-line beat wasn’t huge. Nordstrom’s Q2 2022 revenue of $4.09 billion slightly exceeded analysts’ expectations of $3.96 billion. Moreover, Nordstrom’s adjusted earnings of $0.81 per share were in line with the analyst consensus estimate.

4. Nordstrom’s Seems to Have Difficulty Clearing Out Its Inventory • It’s interesting to consider that there are global supply chain disruptions, and many businesses can’t get the products and components they need. In contrast, Nordstrom might actually have excess inventory. This is what can happen when a company over-orders products in anticipation of a certain level of sales, but high inflation prevents some sales from taking place. • We can see this phenomenon showing up in the numbers. Specifically, Nordstrom’s second-quarter 2022 ending inventory increased 9.9% versus the same period in Fiscal Year 2021. President and Chief Brand Officer Pete Nordstrom directly acknowledged this issue, assuring investors that Nordstrom is “aggressively right-sizing” its inventory while “investing in supply chain and merchandising capabilities that will benefit us in 2023 and beyond.”

5. Inventory issues must be weighing on the executives’ minds lately, as Nordstrom’s CEO also addressed this problem. “We are adjusting our plans and taking action to navigate this dynamic in the short term, including aligning inventory and expenses to recent trends,” he emphasized. • Yet, Nordstrom’s forward guidance suggests that moving merchandise to clear inventory levels won’t be easy. It’s worrisome that Nordstrom reduced its Fiscal Year 2022 revenue growth forecast from a range between 6% to 8% to a range between 5% and 7%. In addition, Nordstrom slashed its full-year earnings per share (EPS) outlook from a range of $3.20 to $3.50, to a range of $2.30 to $2.60.

6. Reference Links :- • https://investor.therealreal.com/financial-information/analyst-coverage • https://www.yahoo.com/now/farfetch-likely-see-recovery-upside-192729349.html • https://www.barrons.com/articles/these-4-retail-stocks-are-a-good-bet-for-tougher-times-according-to-one-analyst-51658419146 • https://www.barrons.com/articles/farfetch-stock-earnings-51661525024 • https://www.thestreet.com/markets/lululemon-stock-slides-as-holiday-forecast-clouds-q3-earnings-beat • https://www.wallstreetzen.com/analysts/noah-zatzkin