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Nordstrom earnings beat, retailer raises forecast, however shares fall as gross sales nonetheless beneath 2019 ranges

A client leaves a Nordstrom retailer on Could 26, 2021 in Chicago, Illinois.

Scott Olson | Getty Photographs

Nordstrom shares fell Tuesday after the division retailer chain reported fiscal second-quarter gross sales remained beneath pre-pandemic ranges.

In contrast with a yr earlier, gross sales greater than doubled, as consumers used Nordstrom’s anniversary sale as a motive to go again to the mall and splurge on new footwear, clothes and activewear. However on a two-year foundation, income was down 6%.

Nordstrom was feeling extra optimistic about the remainder of the yr and raised its outlook, following rivals Macy’s and Kohl’s, which did the identical in latest days.

However its shares had been down greater than 6% in prolonged buying and selling.

Here is how Nordstrom did for the quarter ended July 31 in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by Refinitiv:

  • Earnings per share: 49 cents vs. 27 cents anticipated
  • Income: $3.66 billion vs. $3.36 billion anticipated

Nordstrom reported web earnings of $80 million, or 49 cents per share, in contrast with a lack of $255 million, or $1.62 a share, a yr earlier. Analysts had been anticipating earnings of 27 cents per share.

Income rose to $3.66 billion from $1.86 billion a yr earlier, topping estimates for $3.36 billion.

Complete gross sales from Nordstrom’s anniversary sale occasion had been up 1% in contrast with 2019, the corporate mentioned. Final yr’s occasion was pushed into the third quarter because of the Covid pandemic.

“A compelling merchandise assortment, mixed with new and differentiated providers and experiences, contributed to strengthening buyer engagement and enhancing monetary outcomes throughout our Anniversary Sale,” President Pete Nordstrom mentioned in a press launch.

At Nordstrom’s namesake division retailer model, income was up 127% in contrast with a yr earlier however down 5% on a two-year foundation.

At Nordstrom Rack, an off-price division that competes with TJ Maxx and Macy’s Backstage, gross sales had been up 61% from 2020 however had been down 8% from 2019.

The corporate mentioned its on-line gross sales rose 30% from a yr earlier, representing 40% of Nordstrom’s complete enterprise.

Nordstrom now expects its annual income to rise greater than 35%, up from a previous outlook calling for 25% progress. Analysts had been in search of a 30% enhance, in line with Refinitiv.

As of Tuesday’s market shut, Nordstrom shares are up 21% yr thus far, bringing the retailer’s market cap to $6 billion.

Discover the total earnings press launch from Nordstrom right here.

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