Nordstrom provided an unexpected bright spot during what has been a largely disappointing earnings season so far.
The upscale department store reported first-quarter sales ahead of analysts’ expectations and raised its full-year outlook as shoppers flocked to its stores and refreshed their wardrobes. It also announced that, starting 1 June, a selection of Allbird shoes will be available in 14 Nordstrom stores, with the assortment expanding to the company’s website and more locations later in the year.
Nordstrom reported net earnings of $20M, or $0.13 a share, for the quarter ended 30 April, compared to a loss of $166M, or $1.05 per share, in the year-ago period. Nordstrom reported an adjusted loss of $0.06 cents a share, mostly related to an impairment charge related to a Trunk Club property.
Net sales jumped 18.7 per cent to $3.47bn, exceeding pre-pandemic sales levels, and gross merchandise value increased 19.6 per cent. Analysts had expected sales of $3.29bn. Nordstrom banner net sales increased 23.5 per cent. Net sales for Nordstrom Rack rose 10.3 per cent and continued to show sequential improvement towards pre-pandemic sales levels, the company said.
Digital sales were flat compared with the same period in fiscal 2021 as customers increasingly chose to shop in-store, according to Nordstrom. Digital sales represented 39 per cent of total sales during the quarter.
