Nordstrom reported first-quarter fiscal sales above analysts’ expectations on Tuesday and boosted year-over-year outlook, citing business momentum as shoppers visited the company’s department stores to freshen up their branded closets.
Nordstrom now sees tax revenue in 2022, including credit card sales, increase by 6% to 8%, compared to a previous range of 5% to 7%.
It forecasts earnings per share, excluding the effect of any stock repurchase activity, in the range of $ 3.38 to $ 3.68, from a previous range of $ 3.15 to $ 3.50. On a custom basis, he expects to earn from $ 3.20 to $ 3.50 per share.
Its shares jumped about 9% in trading hours after the news hours.
Optimistic prospects are at odds with retailers such as Target, Kohl’s, Abercrombie & Fitch and a number of others who in recent days have withdrawn their annual forecasts as supply chain costs and other costs lead to profits. But Nordstrom’s business also does not operate in parallel with these other retailers.
Last fall, for example, as many retailers saw their sales recover to levels above pre-pandemic levels, Nordstrom was still working to do so. Now, as retailers like the Macy’s lap face more difficult comparisons year after year, Nordstrom is building a lower base.
CEO Erik Nordstrom said the company was able to tap into demand from people shopping for “long-awaited occasions” as pandemic restrictions disappear and invitations to weddings, reunions and other social gatherings continue.
However, the retailer closed an adjusted loss per share that was slightly higher than analysts were looking for.
Here’s how Nordstrom did its first fiscal quarter compared to what Wall Street expected, according to a Refinitiv survey:
- Loss per share: 6 cents adjusted against 5 cents expected
- Income: $ 3.57 billion versus $ 3.28 billion expected
Nordstrom reported net income for the three-month period ended April 30, at $ 20 million, or 13 cents a share, against a net loss of $ 166 million, or $ 1.05 a share, a year earlier.
Nordstrom lost 6 cents a share on an adjusted basis, excluding gains from the sale of the company’s stake in a corporate office building and an impairment charge related to Trunk Club property. This loss per share was a penny bigger than analysts were looking for.
Nordstrom announced Tuesday that it plans to shut down Trunk Club, a personal styling platform – somewhat similar to Stitch Fix – acquired in 2014. The company said it would focus on resources instead of its own styling services available on Nordstrom .
Total revenue, including credit card sales, rose to $ 3.57 billion from $ 3 billion a year earlier. That exceeded expectations for $ 3.28 billion.
On the Nordstrom banner of the same name, net sales increased by 23.5%, exceeding pre-pandemic levels. Net sales at Nordstrom Rack rose 10.3%, but are still below 2019 levels, the company said.
Nordstrom Rack, which rivals off-price chains such as TJX, Ross Stores and Macy’s Backstage, has struggled more during the pandemic to secure merchandise from other retailers, which it can then sell at a reduced price. In April, Nordstrom announced plans to streamline Rack’s ownership as it hired a bench of executives with previous experience in off-price retailing.
“By increasing our supply of premium brands and adjusting our variety to better align with customer needs, we achieve a better price balance on the Rack,” Nordstrom’s management said in prepared remarks.
Digital sales were steady on an annual basis as shoppers reduced their online spending and returned to stores. E-commerce accounted for 39% of total sales, up from 46% a year earlier.
Nordstrom said its urban stores, including its flagship in New York, performed best during the quarter as employees returned offices to nearby office buildings and tourist traffic recovered. Collectively, urban store sales have returned to pre-pandemic levels, the company said.
Chief Financial Officer Anne Bramman said that, so far, the company has not seen cost inflationary pressures lead to a decline in customer spending. In a post-profit conference call, she said this was due to her clients’ “higher income profile and resilience”.
Nordstrom ended the three-month period with inventory levels up 23.7% from a year earlier, in part because the company ordered additional merchandise to create a range of merchandise in anticipation of the upcoming annual discount.
Also Tuesday, Nordstrom announced that it would soon start selling shoes from Allbirds, making it one of the few third-party retailers in the sustainable sneaker brand, and said it had approved a new $ 500 million purchase.
Nordstrom (JWN) reports losses for the first quarter of 2022
Source link Nordstrom (JWN) reports losses for the first quarter of 2022