Nordstrom exceeded Wall Street’s quarterly sales forecasts for the period ending November 2, with revenue increasing by about 4% year over year due to strong sales in clothing, shoes, and activewear. The Seattle-based retailer, however, maintained a cautious outlook for the holiday season. It adjusted its full-year sales growth forecast to range from flat to an increase of 1%, compared to a previously anticipated 1% decline to 1% growth, while maintaining its adjusted earnings forecast of $1.75 to $2.05 per share.
Despite a decline in sales trends late in October, Nordstrom’s CEO Erik Nordstrom credited the company’s strategic focus on selective shoppers, particularly women’s apparel and activewear, which saw double-digit growth. Shoes, men’s apparel, and kids’ items also posted significant gains. Nordstrom’s Q3 net income was $46 million, or 27 cents per share, down from $67 million the previous year.
Comparable sales rose 4% across Nordstrom’s flagship and Nordstrom Rack brands, outperforming analysts’ expectations of 0.7% growth. Notably, this occurred despite a negative impact from a shift in the calendar affecting its Anniversary Sale. The company continues to rely on Nordstrom Rack for both sales growth and expansion, having opened 23 new stores this year.
Digital sales increased by 6.4%, now accounting for about a third of total sales, aided by enhanced online features and a wider array of more affordable products. Though Nordstrom’s founding family has shown interest in taking the company private, no definitive actions have been taken beyond a non-binding offer. Nordstrom’s shares have risen 32% this year, surpassing the S&P 500’s 26% gains.
Original Story https://www.cnbc.com/2024/11/26/nordstrom-jwn-earnings-q4-2024-.html
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