Nordstrom (NYSE:JWN) on Thursday surpassed Wall Street’s quarterly sales and earnings expectations, as it showed signs of progress in turning around its lagging business.
Yet despite a sizable beat, the retailer stuck with its previous full-year outlook — signaling caution about the coming months. The company expects revenue to fall 4% to 6% and adjusted earnings per share to range between $1.80 and $2.20 for the fiscal year, excluding the impact of winding down its stores and online business in Canada.
Nordstrom’s results, while better than expected, reflect the company’s challenges. Sales for the upscale department store operator in the fiscal second-quarter still fell below pre-pandemic levels. Nordstrom largely missed out on the stimulus-fueled spending spree during Covid that benefited other retailers.
What’s more, Nordstrom Rack, the off-price chain that the retailer wants to fuel its revival, still posted sales declines during the quarter reported Thursday.
CEO Erik Nordstrom said the retailer will focus on boosting the Rack’s sales, on improving inventory management and making its supply chain more efficient through year-end.
“Looking ahead, we remain confident in our ability to deliver on these priorities, all while keeping the customer at the center of everything we do,” he said in a news release.
Earnings per share came in at 84 cents vs. 44 cents expected. Revenue was $3.77 billion vs. the expected $3.65 billion.
Nordstrom’s net income in the quarter rose to $137 million, or 84 cents per share, from $126 million, or 77 cents a share, a year earlier.
JWN shares fell 81 cents, or 4.8%, to begin Friday at $16.01.
