Nordstrom (JWN) reports Q1 2022 losses
Two cyclists and a pedestrian are seen wearing facemasks at Nordstrom Santa Monica branch on May 11, 2020.
Frederic J. Getty Images| AFP | Getty Images
NordstromOn Tuesday, the company reported that fiscal quarter sales were higher than analysts expected and raised its full year outlook. This was due to momentum as customers visited department stores of the company in order to update their wardrobes with designer shoes and brands.
Nordstrom’s revenue for fiscal 2022, which includes credit card sales is up to 6%-8%, compares to an earlier range of 5%-7%.
Earnings per share are forecasted to range from $3.38 to 3.68 (excluding any impact of share repurchase activities), up from $3.15 to $4.50 in the past. Adjusted, the company expects to earn between 3.20 and $3.50 per sharing.
This optimistic outlook is in stark contrast to the negative attitudes displayed by retailers such as Target, Kohl’s, Abercrombie & FitchThere are many other companies that have lowered their annual forecasts in recent weeks as higher supply chain costs and other expenses have impacted profits.
Erik Nordstrom, chief executive officer of the company said that they have been able capitalize on people’s desire for long-awaited events as pandemic restrictions melt away and invitations resume being sent for reunions, weddings and other social gatherings.
Despite this, analysts expected a slightly larger per-share loss.
How Nordstrom made it in its fiscal first quarterBased on Refinitiv’s survey, this is what Wall Street expected.
- Percentage of loss: 6 cents adjusted, vs. expected 5 cents
- Revenue:3.57 billion, vs. expected $3.28 billion
Nordstrom posted net income of $20 millions for the period ending April 30, or 13c per share. This compares to a loss of $166million, or $1.05 a share, one year ago.
Nordstrom’s share price fell 6 cents per share, on an adjusted basis. This excludes the gain from selling its interest in a corporate building and the impairment charge related the Trunk Club property. Analysts had expected a loss per share of one penny.
The total revenue including credit card sales grew by $3.57 billion to $3.28 billion in the same year. This was higher than the $3.28 million expected.
Net sales at Nordstrom Rack’s nameake brand grew 23.5% and exceeded pre-pandemic levels. Nordstrom Rack reported net sales rose 10.3%, however they are still lower than 2019 levels.
Nordstrom Rack competes against off-price chain stores such as TJX, Ross StoresAnd Macy’sBackstage has had more difficulty during the pandemic in securing merchandise from other retailers brands that it can sell at a discount. Nordstrom revealed plans in April to streamline ownership of the Rack businessto align more closely with the full-price team.
Year-over-year, digital sales were flat because shoppers cut their online spending and went back to shops. E-commerce was responsible for 39%, as opposed to 46% in the previous year.
Nordstrom reported that its New York City flagship store, which is located in Manhattan, did the best during quarter because workers moved back to their offices and tourists returned.
Nordstrom purchased extra merchandise to make a string stock ahead of the company’s annual Anniversary Sale. This resulted in inventory levels rising 23.7% over three months.
On Thursdays, Nordstrom announced it will soon start to sell shoesStarting at AllbirdsIt has become one of the few sustainable sneakers brand third-party retailers.
This is a developing story. Stay tuned for new updates.