As it winds down its Canadian operations, Nordstrom managed a big earnings beat and a smaller one on revenues.
An analyst consensus estimate published by Yahoo Finance anticipated adjusted earnings per share of 44 cents and revenues of $3.65 billion.
Net sales were $3.66 billion and revenues were $3.77 versus $3.99 billion and $4.1 billion, respectively, in the year-prior period.
For the Nordstrom banner, net sales slipped 10.1% year over year in the quarter, improving sequentially from the first quarter decrease of 11.4%, the company maintained. It added that the wrap-up of Canadian operations had a 400 basis points negative impact on Nordstrom banner net sales.
The off-price Rack operation posted a net sales decrease of 4.1% year over year in the quarter, the company indicated, improving sequentially from the first quarter decrease of 11.9%. The elimination of store fulfillment for Rack digital orders during the fiscal 2022 third quarter negatively impacted second-quarter sales by about 500 basis points, according to Nordstrom.
In the second quarter, active and beauty grew in the low single-digits year over year, Nordstrom stated, while kids’ apparel and men’s apparel performed better than average.
In announcing the financial results, Erik Nordstrom, company CEO, said, “We’ve worked hard to improve our operating model, and our solid results reflect the continued progress we made against our top priorities to improve Nordstrom Rack performance, increase inventory productivity and deliver efficiencies through supply chain optimization. These 2023 priorities improve the way we operate and drive profitability in the near term, and better position us to succeed and deliver value to our shareholders in the long term. Looking ahead, we remain confident in our ability to deliver on these priorities, all while keeping the customer at the center of everything we do.”
Pete Nordstrom, president and chief brand officer, added, “Our annual Anniversary Sale was a successful event, especially among our most loyal customers. We were pleased by strong sell-through of new merchandise from the best brands, both in stores and online. In the second quarter, we were also encouraged by sequential improvement in sales trends at both Nordstrom and Rack. We remain focused on managing inventory with greater discipline, improving mix and productivity.”
