Nordstrom Inc (JWN)
Profitability ratios
Return on sales
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 37.43% | 45.87% | 44.99% | 45.02% | 51.94% | 43.37% | 52.17% | 52.07% | 48.17% | 47.17% | 48.21% | 47.71% | 51.14% | 51.87% | 51.34% | 51.17% | 45.07% | 52.43% | 44.98% | 52.07% |
| Operating profit margin | 3.29% | 12.11% | 12.40% | 4.35% | 11.41% | -6.58% | 1.06% | 7.26% | -0.50% | 8.88% | 10.41% | 11.87% | 18.37% | 18.73% | 17.84% | 18.27% | 12.61% | 19.10% | 11.32% | 18.24% |
| Pretax margin | 2.62% | 2.40% | 3.08% | 2.64% | 3.46% | 3.45% | 3.44% | 0.88% | -1.74% | -1.72% | -1.69% | 0.03% | 1.67% | 1.74% | 1.82% | 2.25% | 3.94% | 4.44% | 4.09% | 4.39% |
| Net profit margin | 2.55% | 2.33% | 2.18% | 1.91% | 2.60% | 2.73% | 2.88% | 0.97% | -0.98% | -1.07% | -1.15% | 0.08% | 1.26% | 1.32% | 1.39% | 1.65% | 2.91% | 3.28% | 2.99% | 3.25% |
Nordstrom Inc's profitability ratios have shown variability over the past few years.
1. Gross profit margin: Nordstrom's gross profit margin has fluctuated between 37.43% and 52.43% from January 2024 to July 2022. The company experienced a decrease in the gross profit margin in the latest reported period, indicating challenges in managing production and inventory costs.
2. Operating profit margin: The operating profit margin has ranged from -6.58% to 19.10% during the same period. Nordstrom faced significant issues in maintaining profitability in the third quarter of July 2023 when the operating profit margin dropped to -0.50%.
3. Pretax margin: Nordstrom's pretax margin has been volatile, varying from -1.72% to 4.44%. The company struggled with profitability in the second and third quarters of the fiscal year 2023, with negative pretax margins.
4. Net profit margin: The net profit margin has shown fluctuations between -1.15% and 3.28% over the period under review. Although Nordstrom managed to improve its net profit margin in the last reported quarter, the margin remains relatively low compared to earlier periods.
Overall, Nordstrom's profitability ratios reflect a mix of positive and negative trends, with challenges in maintaining consistent profitability evident in certain periods, highlighting the need for effective cost management and revenue generation strategies.
Return on investment
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | Feb 3, 2024 | Jan 31, 2024 | Oct 31, 2023 | Oct 28, 2023 | Jul 31, 2023 | Jul 29, 2023 | Apr 30, 2023 | Apr 29, 2023 | Jan 31, 2023 | Jan 28, 2023 | Oct 31, 2022 | Oct 29, 2022 | Jul 31, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 31, 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.51% | 19.64% | 23.05% | 7.95% | 20.93% | -11.56% | 1.68% | 11.32% | -0.78% | 14.58% | 17.69% | 20.66% | 33.04% | 33.21% | 29.02% | 29.76% | 22.35% | 34.69% | 19.97% | 33.42% |
| Return on assets (ROA) | 4.27% | 3.78% | 4.06% | 3.49% | 4.76% | 4.80% | 4.53% | 1.51% | -1.55% | -1.75% | -1.95% | 0.15% | 2.26% | 2.34% | 2.26% | 2.68% | 5.15% | 5.96% | 5.28% | 5.95% |
| Return on total capital | 43.33% | 47.42% | 66.46% | -82.30% | -16.33% | -229.48% | -274.21% | -33.83% | -221.22% | -4.23% | -26.13% | 3.74% | 51.42% | 10.99% | 67.66% | 13.87% | 117.19% | 24.86% | 135.65% | 146.82% |
| Return on equity (ROE) | 33.60% | 35.66% | 37.03% | 35.41% | 47.41% | 47.76% | 55.97% | 18.66% | -20.18% | -22.85% | -31.22% | 2.36% | 26.79% | 27.74% | 34.98% | 41.58% | 71.19% | 82.35% | 82.17% | 90.88% |
Based on the provided data, Nordstrom Inc's profitability ratios have shown varying trends over the analyzed period:
1. Operating Return on Assets (Operating ROA): This ratio measures the company's operating profit generated per dollar of assets. Nordstrom's Operating ROA ranged between -11.56% and 34.69% during the analyzed period. The highest Operating ROA was recorded in July 2022, while the lowest was observed in January 2024. The recent trend shows a decline in profitability since July 2023.
2. Return on Assets (ROA): ROA indicates how efficiently the company is utilizing its assets to generate profit. Nordstrom's ROA fluctuated between -1.95% and 5.96% during the period under review. The highest ROA was in July 2022, whereas the lowest was in April 30, 2023. The company's profitability levels have been volatile over time.
3. Return on Total Capital: This ratio reflects the return generated on all capital invested in the business, including debt and equity. Nordstrom's Return on Total Capital ranged from -274.21% to 146.82% during the analyzed period. The highest return was recorded in January 31, 2022, while the lowest was in October 31, 2023. The recent trend shows improvement in profitability levels after a period of negative returns.
4. Return on Equity (ROE): ROE measures the return generated on shareholders' equity. Nordstrom's ROE varied between -31.22% and 90.88% over the period. The highest ROE was in January 31, 2022, while the lowest was in April 30, 2023. The company's profitability levels have fluctuated, but the recent trend shows a gradual increase in ROE since October 31, 2023.
In conclusion, Nordstrom Inc has experienced fluctuating profitability ratios over the analyzed period, with varying levels of operational and financial efficiency. It is important for investors and stakeholders to closely monitor these ratios to assess the company's financial performance and sustainability.