A Citibike docking station in front of the Nordstrom flagship store in New York, USA, on Wednesday, February 21, 2024.
Bing Guan | Bloomberg | Getty Images
Nordstrom on Thursday fell short of Wall Street’s quarterly profit expectations as off-price chain Rack outperformed the rest of its stores.
Despite the profit decline, the Seattle-based department store operator posted revenue growth and maintained its full-year guidance.
Here’s what the retailer reported for its first fiscal quarter compared to Wall Street’s expectations, based on an analyst survey from LSEG:
- Loss per share: 24 cents versus 8 cents expected
- Revenue: $3.34 billion versus expected $3.20 billion
Nordstrom shares fell about 7% in extended trading.
Nordstrom has leaned on its off-price chain Nordstrom Rack to drive growth. Additional Rack stores opened, including nine during the quarter. It is on track to open a total of 22 new Rack stores this year.
But Rack, which offers brand names at cheaper prices, lags behind competitors such as B. retarded TJX-owned TJ Maxx and Marshalls.
However, the off-price chain showed signs of progress during the quarter. It outperformed Nordstrom’s flagship brand with comparable sales up 7.9% year-over-year. Comparable sales for the company’s flagship brand rose 1.8%.
The retailer reiterated that it expects a profit of $1.65 to $2.05 for the full fiscal year. Nordstrom expects full-year sales to decline 2 percent to 1 percent year-over-year.
In its fiscal first quarter, Nordstrom posted a net loss of $39 million, compared to a net loss of $205 million in the same period last year. The company’s total revenue rose to $3.34 billion from $3.18 billion a year ago.
According to Nordstrom, activewear, children’s and women’s apparel saw strong double-digit growth in the quarter compared to a year ago. Beauty sales also increased in the high single digits, the company said.
The results come as the Nordstrom family is again considering taking the company private. Last month it was said that a special committee had been formed to evaluate offers.
The company’s quarterly results on Thursday were its first since the death of former Chairman Bruce Nordstrom, the father of CEO Erik Nordstrom and President Pete Nordstrom, earlier this month.
Nordstrom, like its department store rivals, is trying to attract young consumers while relying on aging customers.
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2024-05-30 20:55:00
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