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Nordstrom Operating Margin %

: -38.37% (As of Apr. 2020)
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Operating Margin % is calculated as Operating Income divided by its Revenue. Nordstrom's Operating Income for the three months ended in Apr. 2020 was $-813 Mil. Nordstrom's Revenue for the three months ended in Apr. 2020 was $2,119 Mil. Therefore, Nordstrom's Operating Margin % for the quarter that ended in Apr. 2020 was -38.37%.

Warning Sign:

Nordstrom Inc operating margin has been in 5-year decline. The average rate of decline per year is -12.2%.

NYSE:JWN' s Operating Margin % Range Over the Past 10 Years
Min: -0.74   Med: 8.72   Max: 11.53
Current: -0.74

-0.74
11.53

NYSE:JWN's Operating Margin % is ranked lower than
72% of the 1010 Companies
in the Retail - Cyclical industry.

( Industry Median: 2.71 vs. NYSE:JWN: -0.74 )

Nordstrom's 5-Year Average Operating Margin % Growth Rate was -12.20% per year.

Nordstrom's Operating Income for the three months ended in Apr. 2020 was $-813 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2020 was $-105 Mil.

Warning Sign:

Nordstrom Inc had operating loss over the past 3 years.


Nordstrom Operating Margin % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Nordstrom Annual Data
Jan11 Jan12 Jan13 Jan14 Jan15 Jan16 Jan17 Jan18 Jan19 Jan20
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.63 6.79 5.98 5.28 5.05

Nordstrom Quarterly Data
Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20
Operating Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.24 5.58 5.26 6.59 -38.37

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.


Nordstrom Operating Margin % Distribution

* The bar in red indicates where Nordstrom's Operating Margin % falls into.



Nordstrom Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Nordstrom's Operating Margin % for the fiscal year that ended in Jan. 2020 is calculated as

Operating Margin %=Operating Income (A: Jan. 2020 ) / Revenue (A: Jan. 2020 )
=784 / 15524
=5.05 %

Nordstrom's Operating Margin % for the quarter that ended in Apr. 2020 is calculated as

Operating Margin %=Operating Income (Q: Apr. 2020 ) / Revenue (Q: Apr. 2020 )
=-813 / 2119
=-38.37 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Nordstrom  (NYSE:JWN) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


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