Nordstrom Inc (JWN)
Pretax margin
| Feb 3, 2024 | Jan 28, 2023 | Jan 29, 2022 | Jan 30, 2021 | Feb 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 147,000 | 337,000 | 246,000 | -1,228,000 | 682,000 |
| Revenue | US$ in thousands | 14,693,000 | 15,530,000 | 14,789,000 | 10,715,000 | 15,524,000 |
| Pretax margin | 1.00% | 2.17% | 1.66% | -11.46% | 4.39% |
February 3, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $147,000K ÷ $14,693,000K
= 1.00%
The pretax margin of Nordstrom Inc has shown fluctuating performance over the past five years. In the most recent fiscal year, ending on Feb 3, 2024, the pretax margin was 1.00%, reflecting a decrease from the previous year's level of 2.17%. This decline may indicate potential challenges in controlling operating expenses or generating higher revenues relative to pre-tax costs.
Comparing the current pretax margin with historical data reveals a mixed trend. In the fiscal year ending Jan 28, 2023, the pretax margin was higher at 2.17%, suggesting stronger profitability in that period. However, prior to that, the company experienced a lower pretax margin of 1.66% in the fiscal year ending Jan 29, 2022, indicating potential efficiency or performance issues.
Notably, Nordstrom Inc faced significant challenges in the fiscal year ending Jan 30, 2021, where the pretax margin was notably negative at -11.46%. This negative performance could be attributed to various factors such as economic downturns, operational inefficiencies, or one-time charges impacting profitability.
On a more positive note, in the fiscal year ending Feb 1, 2020, Nordstrom Inc achieved a pretax margin of 4.39%, indicating strong profitability relative to costs before taxes. This performance may suggest effective cost management, revenue growth, or other favorable operational strategies in that period.
Overall, Nordstrom Inc's pretax margin has displayed variability in recent years, highlighting the importance of closely monitoring operational efficiency, cost control measures, and revenue generation strategies to sustain and improve profitability levels.
Peer comparison
Feb 3, 2024