Nordstrom reported third-quarter profit that topped Street estimates but sales that missed, with declines across both its banners.
But the department store retailer held to its full-year revenue outlook and executives on the earnings call said the company has made progress, with lower markdowns and inventory down by nine per cent.
Nordstrom continues to expand its off-price Nordstrom Rack banner, which also saw some improvement during the quarter. The retailer opened 11 new Rack outlets during the quarter and has announced plans for an additional 17 stores.
“In the third quarter we continued to make progress against our priorities and we’re especially pleased with the resulting improvements in gross margin and earnings,” stated Erik Nordstrom, CEO, Nordstrom. “Given continued uncertainty and softening consumer spend, we’re remaining agile and focused on serving our customers. Thanks to solid execution by our merchants, we’re heading into holiday in a favourable inventory position across both banners.”
