SEATTLE - Nordstrom, Inc. (NYSE:JWN) reported better-than-expected second-quarter earnings and revenue on Tuesday, leading to a jump of more than 2% in the company's stock.
The upscale retailer also provided an optimistic outlook for the full fiscal year, surpassing analyst estimates.
For the quarter ended August 3, 2024, Nordstrom posted adjusted earnings per share of $0.96, significantly beating the analyst consensus of $0.71. Revenue rose 3.4% YoY to $3.89 billion, slightly above the $3.88 billion analysts had projected.
The company's total comparable sales increased 1.9% compared to the same period last year. Nordstrom's flagship banner saw comparable sales rise 0.9%, while Nordstrom Rack posted a stronger 4.1% comparable sales growth.
Digital sales grew 6.2% YoY, representing 37% of total sales for the quarter. The company noted that the timing shift of its Anniversary Sale positively impacted net sales by approximately 100 basis points.
"Our second quarter results were solid, and we're encouraged by the continued topline strength in both banners and the progress we're making to expand gross margin and increase profitability," said Erik Nordstrom, CEO of Nordstrom, Inc.
Looking ahead, Nordstrom provided an upbeat full-year earnings forecast of $1.75 to $2.05 per share, with the midpoint of $1.90 surpassing the analyst consensus of $1.76.
"We remain encouraged by 2024 priorities of Nordstrom banner improvements, focus on operational efficiencies, and building on Rack growth," KeyBanc Capital Markets analysts said in a post-earnings note.
"We also acknowledge that the potential of a go-private transaction remains a factor of share price momentum since the announcement on 3/18."
Separately, Jefferies analysts said sustained execution in the second half of the year "would lead to sentiment improvement."
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