Investing.com -- Shares in Nordstrom (NYSE:JWN) dipped in premarket U.S. trading on Wednesday after the department store chain unveiled underwhelming full-year guidance that overshadowed better-than-expected fourth-quarter results.
For the three months ended Jan. 31, Nordstrom reported adjusted earnings of $0.96 per diluted share and revenue of $4.42B, beating estimates of $0.89 and $839.1M, respectively.
But speaking to analysts in a post-results call, Chief Financial Officer Cathy Smith flagged that Nordstrom continues to "see a cautious consumer that is mindful of discretionary purchases in light of inflation, higher interest rates, and the resumption of student loan payments."
The firm expects per-share income of $1.65 to $2.05 and revenue growth between a 2% decline and 1% growth, while comparable sales are seen in a range of 1% decline to 2% growth compared with the prior year.
Analysts at Goldman Sachs noted that they were "encouraged" by indications that recent strategic initiatives by Nordstrom are delivering results, including improving profits at the company's off-price Rack brand.
"However, growth trends at the Full Line business remain under pressure and margin delivery of the total business is showing limited signs of improvement vs. pre-pandemic levels, indicating that [Nordstrom]’s initiatives have not been able to outpace a choppy backdrop," they added.
Analysts at BMO Capital Markets, meanwhile, said they believe the "onus remains on management execution."
Yasin Ebrahim contributed to this report.