Both Gap Inc. (GPS) and Nordstrom (JWN) reported their quarterly results after the market close on Thursday. Gap's results were mixed, with adjusted earnings beating estimates, but revenue falling short. Nordstrom beat on both the top and bottom lines. Morningstar Equity Analyst David Swartz joined Yahoo Finance Live to discuss the results.
On Nordstrom, Swartz says overall, sales were better than expected, but that's more because expectations were so low. Swartz also notes that, like Gap, Nordstrom has been cutting expenses, but more top-line growth is needed. On Nordstrom's off-price unit Rack, Swartz says the problem is that "Nordstrom doesn't seem to know what to do with it. It seems like every quarter we hear a different story about what Rack's place is in discount retail and its place at Nordstrom."
