How Is Nordstrom Likely To Grow In the Next 2 Years?
Nordstrom (NYSE: JWN) has displayed healthy growth in revenue in the last few quarters. Both the company’s segments, retail sales and credit cards, have performed well. In fiscal 2017, the company’s sales surged 4.9% y-o-y to a record $15.5 billion. This boost in Nordstrom’s full year sales was primarily driven by rising e-commerce business, a well-positioned customer strategy resulting in positive customer trends, international diversification, and growth in Nordstrom’s rack business.
Going forward, we are projecting revenues for both segments of the company to continue their growth, following historical trends. Overall, we anticipate the company’s revenue to grow at a compounded annual growth rate (CAGR) of 2%. We have built an explanatory dashboard to outline major drivers of revenue over the next two years.
Estimating Nordstrom Revenue Growth
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Nordstrom generates revenue from two segments: Retail and Credit Card.
As per our analysis, we believe that both these reported segments of the company will report stable growth in the next two years. The Nordstrom Rack segment of the company is expected to continue to drive strong growth in line with the guidance provided by the company. The credit card segment is also expected to remain a fair highlight as per sales guidance. With customers increasingly engaging with Nordstrom through multiple ways, the Company is more than ever focused on providing a seamless experience across stores and online. All these factors, coupled with strong sales momentum, will enable Nordstrom to continue to grow its top line.
Our detailed estimates have been highlighted in our dashboard above. You can make changes to our assumed figures to arrive at your own revenue and growth estimates for the company.
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