03:33 PM EDT, 05/13/2024 (MT Newswires) -- Nordstrom ( JWN ) will likely reiterate its fiscal full-year guidance in the Q1 earnings report with fundamental trends "fairly solid," UBS Securities said Monday in a report.

"We think this will cause sentiment to modestly improve," give the bearish lean, with Q1 expected to in line with consensus, UBS said.

Industry web traffic data shows an acceleration of 590 basis points in unique visits to the company's full-price and off-price websites in Q1 from the previous quarter, and other industry metrics show improved sales and visits, UBS said.

Nordstrom ( JWN ) still faces "structural challenges" in the face of competition from off-price retailers, brands and Amazon ( AMZN ) , UBS said.

"We believe big EPS misses are not priced into the stock," and downside risk to the consensus for fiscal year earnings still looms, UBS said.

UBS maintained its sell rating on Nordstrom ( JWN ) with a price target of $12.

Nordstrom ( JWN ) shares rose 3% in recent Monday trading. Results from fiscal Q1 are scheduled for May 30.

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