Citi analysts cut the firm's price target on Neutral-rated Nordstrom (NYSE:JWN) to $17 from $20, stating sentiment is "extremely negative" ahead of the company's earnings release.
The analysts expect JWN's earnings to be slightly below consensus and are modeling EPS of -$0.12 vs. consensus of -$0.10.
"We model sales -10.3% vs consensus -12.8% and guidance of -LDD in 1H. Based on credit card data and foot traffic trends, as well as the general consumer slowdown experienced beginning in mid- to late March, we believe JWN sales likely decelerated even though they serve a higher income consumer (as this did not protect them from pressure in recent quarters)," they added.
"Management had guided 1H sales -LDD, so the expectation was already for a meaningful deceleration (from -4.2% in 4Q22)."
In addition, Citi believes JWN will reiterate annual guidance of $1.80-2.00.