Nordstrom
posted stronger-than-expected earnings for its latest quarter and reaffirmed guidance, but revenue fell as shoppers pulled back.
Nordstrom
(ticker: JWN) posted adjusted earnings of 25 cents a share for the fiscal third quarter ended in October, ahead of consensus estimates for 12 cents a share, according to FactSet. Revenue fell 6.4% year over year to $3.3 billion in the period, narrowly missing projections for $3.4 billion.
Sales at the company’s banner department stores fell 9.4% compared to the prior year. Nordstrom Rack, the company’s off-price segment, fared a bit better, with sales down 1.8%.
“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,” said CEO Erik Nordstrom. “Given continued uncertainty and softening consumer spend, we’re remaining agile and focused on serving our customers.”
Gross profit was 35%, up 1.8 percentage points year over year thanks to lower markdowns and a better inventory position, the company said. Inventory levels were 8.8% lower than the year-ago quarter.
The company reaffirmed its outlook for fiscal 2023 and narrowed its earnings-per-share range. It continues to expect revenue will fall between 4% and 6% for the full year, while adjusted earnings per share will range between $1.90 and $2.10. Previous guidance called for earnings to range between $1.80 and $2.20 a share.
Shares of Nordstrom ticked up 0.6% to $15 after-hours trading. The stock is down 8% this year.
Write to Sabrina Escobar at [email protected]
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