Nordstrom Inc (NYSE:JWN) stock rose 4.97% (As on August 28, 11:52:50 AM UTC-4, Source: Google Finance) after the company reported better-than-expected second quarter earnings and revenue and also provided an optimistic outlook for the full fiscal year, surpassing analyst estimates. 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. Gross merchandise value (“GMV”) increased 3.5 percent. In the second quarter, active, women’s apparel, beauty and kids had the strongest growth versus 2023. During the Anniversary Sale, including one day that fell in the third quarter, the top growing categories were beauty, active and home. Gross profit, as a percentage of net sales, of 36.6 percent increased 155 basis points compared with the same period in fiscal 2023, primarily due to strong regular price sales and leverage on higher total sales. Ending inventory increased 8.3 percent compared with the same period in fiscal 2023, versus a 3.4 percent increase in sales. Adjusted EBIT of $244 million excluded the charge primarily related to supply chain asset impairment. The Company ended the second quarter with $1.5 billion in available liquidity, including $679 million in cash. To date in fiscal 2024, the Company has opened eleven stores.
JWN in the second quarter of FY 24 has reported the adjusted earnings per share of 96 cents, beating the analysts’ estimates for the adjusted earnings per share of 71 cents. The company had reported the adjusted revenue growth of 3.4 percent to $3.89 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $3.88 billion.
Additionally, the company declared a quarterly cash dividend of $0.19 per share, payable on September 18, 2024, to shareholders of record at the close of business on September 3, 2024.
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. For fiscal 2024, the company expects Revenue range, including retail sales and credit card revenues, of 1.0 percent decline to 1.0 percent growth versus the 53-week fiscal 2023, which includes an approximately 135 basis point unfavorable impact from the 53rd week, Comparable sales range to be of flat to 2.0 percent growth versus 52 weeks in fiscal 2023 and Adjusted EBIT margin to be of 3.6 to 4.0 percent of sales.