Nordstrom, Inc. Reports Financial Results for Third Quarter 2024
Nordstrom, Inc. (NYSE: JWN) has announced its financial results for the third quarter ending November 2, 2024, revealing positive sales growth and improvements across several key metrics.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Year-Over-Year Change |
|---|---|---|---|
| Revenue Growth (%) | 4.6 | N/A | +4.6 |
| Earnings Per Share (EPS) | $0.27 | N/A | N/A |
| Adjusted EPS | $0.33 | N/A | N/A |
| EBIT (in millions) | $83 | $102 | -18.6 |
| Adjusted EBIT (in millions) | $97 | $77 | +25.9 |
Financial Interpretation : Nordstrom experienced a 4.6% increase in net sales compared to Q3 2023, highlighting a favorable year-over-year performance. However, EBIT showed a decline of 18.6%, reflecting increased operational costs, partially offset by a 25.9% rise in adjusted EBIT.
Segment Revenue Performance
| Segment | Revenue Growth (%) | Guidance/Comments |
|---|---|---|
| Nordstrom Net Sales | 1.3 | Comparable sales up 4.0% |
| Nordstrom Rack Sales | 10.6 | Significant segment growth |
Segment Interpretation : The Nordstrom Rack demonstrated robust performance with a 10.6% increase in sales, contributing significantly to the overall revenue boost. Meanwhile, Nordstrom banner sales reflected steady growth with a 1.3% hike.
Key Developments and Operational Highlights - Women's apparel and active segments achieved double-digit growth. - Other categories like shoes and men's apparel increased by mid to high single digits. - Digital sales rose by 6.4%, representing 34% of total sales despite the timing shift of the Anniversary Sale impacting sales metrics negatively.
Comments from Company Officers Erik Nordstrom, CEO, emphasized the effective execution of sales strategies and gross margin enhancement, expressing confidence in sustaining this momentum. Pete Nordstrom, President, highlighted the achievement in aligning brand assortments with consumer preferences, projecting a well-positioned stance for the holiday season.
Dividends and Share Repurchase Program The board declared a quarterly cash dividend of $0.19 per share, payable on December 18, 2024.
Forward Guidance Nordstrom updated its fiscal 2024 outlook with projected revenue growth ranging from flat to 1.0% and comparable sales growth between 1.0% to 2.0%. EPS and adjusted EPS are expected between $1.40 to $1.70 and $1.75 to $2.05, respectively.
Stock Price Movement Post-announcement, Nordstrom's stock saw a decrease of 1.08%, signifying mixed market reactions to the earnings results.
Overall, Nordstrom has shown commendable resilience in navigating the market with solid segment performances and optimistic forward guidance, offering reassurance amid challenging retail landscapes.
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