Nordstrom's results reflect cautious consumer spending, echoing department store sector blues
Nordstrom says its sales and profits fell in its fiscal second quarter, joining its department store peers coping with shoppers' cautious spending
NEW YORK — Nordstrom on Thursday reported that its sales and profits fell in its fiscal second quarter, joining itsdepartment store peers coping with shoppers' cautious spending.
But its results still topped Wall Street expectations. The Seattle-based upscale department store reaffirmed its financial annual outlook that calls for a sales decline for the year.
After initially rising, its stock was down about 2% in after-markets trading Thursday.
Nordstrom’s sales were affected by the timing of the company’s anniversary sale, with one week falling into the third quarter this year compared to one day in 2022. Moreover, last year’s results included a full quarter of sales from its Canadian operations, which the company wound down in June of this year.
Nordstrom reported net income of $137 million, or 84 cents per share, for the quarter ended July 29. That compares with $126 million, or 77 cents per share, in the year-ago period.
Total sales fell 7.9% to $3.77 billion from $4.09 billion in the quarter.
Analysts were expecting 45 cents per share on $3.67 billion, according to FactSet.
Nordstrom said that it saw improvement in many areas. For example, children's and men's clothing performed better than average at both the Nordstrom stores and Nordstrom Rack. Women’s clothing improved sequentially from the first quarter. The chain said that inventories are down 18% from a year ago.
Nordstrom said it expects a revenue decline between 4% to 6% for the year compared with a year ago. It also expects earnings per share of between $1.80 per share to $2.20 per share for the year, excluding
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