Retailers are evolving to meet the expectations of modern, tech-savvy shoppers. But many seem to be moving too slowly as their demand is lagging, causing the industry to underperform the market -
over the past six months, retail stocks have shed 13.6%. This drawdown was worse than the S&P 500’s 5.1% loss.
When Wall Street turns bearish on a stock, it’s worth paying attention.
These calls stand out because analysts rarely issue grim ratings on companies for fear their firms will lose out in other business lines such as M&A advisory.
What has Wall Street been buzzing about this week? Here is a quick look at the top 5 buy calls and the top 5 sell calls made by Wall Street's best analysts during the trading week of March 31-April 4, 2025.
The SPDR S&P Retail ETF (NYSE: XRT) is trading lower Tuesday as retail and apparel stocks fall following weak consumer spending data and poor earnings reports.
Nordstrom surpassed earnings expectations in its fourth quarter of 2024, driven by effective cost management and digital sales growth, despite inventory and expense challenges.
Luxury department store chain Nordstrom (NYSE:JWN) beat Wall Street’s revenue expectations in Q4 CY2024, but sales fell by 2.2% year on year to $4.32 billion. Its non-GAAP profit of $1.10 per share was 18.6% above analysts’ consensus estimates.
Retailers are overhauling their operations as technology redefines the shopping experience. Still, secular trends are working against their favor as e-commerce continues to take share from brick and mortars.
This puts retail stocks in a tough spot, and over the past six months, the industry’s returns were flat while the S&P 500 gained 9%.
As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the department store industry, including Dillard's (NYSE:DDS) and its peers.
Nordstrom has been treading water for the past six months, recording a small return of 1.3% while holding steady at $24.13. The stock also fell short of the S&P 500’s 6.6% gain during that period.
Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating for Nordstrom, setting a $24 price target. While showing strong momentum, Nordstrom faces potential gross margin pressure from competitive strategies.
