- Nordstrom reported fiscal first-quarter sales ahead of analysts’ estimates.
- Nordstrom also raised its financial outlook for the full year, citing an uptick in business.
- CEO Eric Nordstrom said the company was able to capitalize on demand from people shopping for “long-awaited opportunities.”
Nordstrom on Tuesday reported fiscal first-quarter sales ahead of analysts’ expectations and raised its full-year outlook, citing momentum in business as shoppers flock to refresh their wardrobes with designer brands and shoes. Visited the company’s department store.
Nordstrom now sees fiscal year 2022 revenue with credit card sales up 6% to 8%, compared to an earlier range of 5% to 7%.
It estimates earnings per share, excluding the impact of any share repurchase activity, in the range of $3.38 to $3.68, with the prior range of $3.15 to $3.50. On an adjusted basis, it expects to earn between $3.20 and $3.50 per share.
Its shares rose nearly 12% in after-hours trading on the news.
The optimistic outlook contrasts with retailers such as Target, Kohl’s, Abercrombie & Fitch, and others, which have dialed back their annual forecasts in recent days as supply chain costs and other expenses eat into profits. But Nordstrom’s business isn’t working as well as those other retailers.
Last fall, for example, many retailers saw their sales rise above pre-pandemic levels Nordstrom was still working to do. Now, as retailers like Macy’s Lap the year-over-year comparisons are more difficult, Nordstrom is building a lower base.
Chief executive Eric Nordstrom said the company was able to capitalize on demand from people who are shopping for “long-awaited occasions” as pandemic restrictions end and invitations to weddings, reunions and other social gatherings are lifted. gets started again.
Still, the retailer booked an adjusted per-share loss that was slightly wider than analysts expected.
Here’s How Nordstrom Fared its fiscal first quarter Compared to what Wall Street was predicting based on the Refinitiv survey:
- Loss per share: 6 cents adjusted vs. 5 cents expected
- Revenue: $3.57 billion versus $3.28 billion expected
Nordstrom reported net income of $20 million, or 13 cents per share, for the three-month period ended April 30, compared to a net loss of $166 million, or $1.05 per share, a year ago.
Nordstrom lost 6 cents per share on an adjusted basis, which does not include gains resulting from the sale of the company’s interest in the corporate office building and impairment charges related to the Trunk Club property. The loss per share was a penny higher than analysts had expected.
Total revenue, including credit card sales, rose to $3.57 billion from $3 billion a year ago. It beat expectations of $3.28 billion.
On the banner bearing Nordstrom’s namesake, net sales rose 23.5%, well above pre-pandemic levels. Nordstrom Rack’s net sales rose 10.3%, but were still below 2019 levels, the company said.
Nordstrom Rack, which competes with off-price chains such as TJX, Ross Stores and Macy’s Backstage, has struggled further during the pandemic to secure merchandise from other retail brands that it can sell at a markdown . In April, Nordstrom announced plans to streamline ownership of the Rack business to better synergize with its full-price team.
Digital sales were flat on a year-over-year basis, as shoppers reduced their online spending and headed back to stores. E-commerce represented 39% of total sales, compared to 46% a year ago.
Nordstrom said its urban stores, including its prime location in New York City, performed the strongest during the quarter, as workers returned offices to nearby office buildings and tourist traffic resumed.
The company ended the three-month period with inventory levels up 23.7% compared to a year earlier, as Nordstrom ordered additional goods to build up a string stock of merchandise ahead of its upcoming, annual anniversary sale.
Also on Thursday, Nordstrom announced that it will soon begin selling shoes from Allbirds, making it one of the sustainable sneaker brand’s few third-party retail partners.
This story is developing. Please check back for updates.
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