Nordstrom, Inc, an American luxury department store chain headquartered in Seattle, has reported net sales of $3,347 million in the third quarter (Q3) of fiscal 2024 (FY24) ended November 2, an increase of 4.6 per cent year-over-year (YoY). The comparable sales increased 4.0 per cent compared with the same period in FY23.

The gross profit, as a percentage of net sales, of 35.6 per cent increased 60 basis points (bps) compared to 35.0 per cent in the same period last fiscal, primarily due to strong regular price sales. Ending inventory increased 5.9 per cent compared with the same period in fiscal 2023, versus a 4.6 per cent increase in sales, Nordstrom said in a press release.

Nordstrom has reported net sales of $3,347 million in Q3 FY24, up by 4.6 per cent YoY, with comparable sales increased by 4.0 per cent and digital sales growing 6.4 per cent YoY.
The gross profit increased to 35.6 per cent, and EBIT reached $83 million.
For 9M FY24, net sales rose 4.3 per cent YoY to $10,353 million, with EBIT up 620 per cent to $252 million.
FY24 EPS is forecast at $1.40–$1.70.

In the third quarter, women’s apparel and active had double-digit growth, and shoes, men’s apparel and kids were up mid to high single-digits, versus FY23. Growth in women’s apparel, shoes and men’s apparel accelerated sequentially from the second quarter.

The earnings before interest and taxes (EBIT) were $83 million, and total comparable sales increased 4.0 per cent YoY. The gross merchandise value (GMV) increased 5.3 per cent YoY.

In terms of brand, Nordstrom banner net sales increased 1.3 per cent and comparable sales increased 4.0 per cent compared with the same period in fiscal 2023. GMV increased 2.4 per cent YoY. Meanwhile, Nordstrom Rack net sales increased 10.6 per cent and comparable sales increased 3.9 per cent compared with the same period in fiscal 2023.

The digital sales of the company increased 6.4 per cent compared with the same period in FY23. Selling, general and administrative (SG&A) expenses, as a percentage of net sales, of 36.6 per cent increased 25 basis points compared with 36.3 per cent in the same period in fiscal 2023, primarily due to higher labour costs and a charge related to accelerated technology depreciation, partially offset by leverage on higher sales and improvements in variable costs across the business. Excluding the $14 million charge related to accelerated technology depreciation, adjusted SG&A expenses, as a percentage of net sales, were 36.2 per cent, said the release.

“The continued sales growth across the company and strong gross margin in the third quarter indicate our team’s focus and efforts are working,” said Erik Nordstrom, chief executive officer (CEO) of Nordstrom. “Our customers have a lot of choices, and our results give us encouragement that we are on the right path. Looking ahead, we will continue to improve our shopping experience as we strive to maintain the positive momentum we have worked towards all year.”

“Our third quarter results demonstrate that our strategic focus on curating a compelling brand assortment is resonating with customers,” said Pete Nordstrom, president of Nordstrom. “Our actions throughout this year have led to this moment, and we feel well-positioned for a successful holiday season and look forward to helping our customers celebrate the moments that matter. I am grateful to our dedicated team for consistently delivering the high level of service our customers have come to expect from Nordstrom.”

Nine months (9M) financials

Nordstrom’s net sales in 9M FY24 period were $10,353 million, an increase of 4.30 per cent YoY, and total revenue touched $10,692 million, up by 4.07 pe cent. SG&A expenses increased to $3,680 million in 9M FY24 from $3,466 million same period of last fiscal.

The earnings before interest and income taxes were $252 million in 9M FY24, compared to $35 million of the same period in FY23, a substantial surge of 620 per cent. The basic earnings per share (EPS) in 9M 2024 stood at $0.78 in 2024, and diluted EPS at $0.76.

Outlook

For the fiscal 2024, Nordstrom estimates revenue range, including retail sales and credit card revenues, of flat to 1.0 per cent growth, and comparable sales growth of 1.0-2.0 per cent. The company also expects EBIT margin to be 3.0 to 3.4 per cent of sales, adjusted EBIT margin 3.6 to 4.0 per cent of sales, and income tax rate of approximately 27 per cent in this fiscal. It also expects EPS to be in the range of $1.40 to $1.70, and adjusted EPS of $1.75 to $2.05.

Fibre2Fashion News Desk (SG)