Shares of Nordstrom, Inc. (JWN) gained 7.7% during the after-market trading session on Tuesday, following the company's second-quarter results, wherein both the top and bottom lines beat the respective Zacks Consensus Estimate and improved year over year. Anniversary Sale timing, which led to the shift of one week from the third quarter to the second quarter, had a positive impact on net sales. Following the results, management updated its fiscal 2024 outlook, raising the lower end of the guidance range for ...

Financial Data and Key Metrics Changes - The company reported net sales of $3.8 billion for Q2 2024, with earnings per share of $0.96, reflecting a 3.4% increase in total net sales and a 1.9% increase in comparable sales [5][20][21] - Gross profit as a percentage of net sales expanded by 155 basis points to 36.6%, driven by strong regular price sales and slight improvements in shrink [21][22] - Ending inventory increased by 8.3% year-over-year, with inventory growth exceeding sales growth for the first time in several quarters [21][18] Business Line Data and Key Metrics Changes - Nordstrom banner net sales increased by 0.9%, while Nordstrom Rack net sales grew by 8.8%, with comparable sales increasing by 4.1% [21][22] - Digital sales grew by 6.2%, representing 37% of total sales during the quarter, marking the fifth consecutive quarter of sequential improvement [21][22] - The Anniversary Sale saw strong participation, particularly from loyal customers, with 75% of Icon and Ambassador Nordy Club members shopping the sale [12][13] Market Data and Key Metrics Changes - The company experienced strong sales growth across various categories, with the Active category being the top performer, showing double-digit growth [16][17] - The Beauty category continued to perform well, supported by strong sales in fragrances and haircare essentials [17] - The Kids category also sustained momentum, with baby gear contributing significantly to growth [18] Company Strategy and Development Direction - The company is focused on driving Nordstrom banner growth, optimizing operations, and building momentum at the Rack [6][11] - A strategic decision was made to cease the build-out of a leased omnichannel center in the Pacific Northwest, opting to utilize existing supply chain networks instead [10] - The company aims to enhance customer experience through improved inventory flow and the implementation of RFID technology [9][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year guidance despite external uncertainties, updating revenue expectations to a range of a decline of 1% to an increase of 1% [24][25] - The company anticipates a negative impact of approximately 100 basis points on third-quarter net sales due to the timing shift of the Anniversary Sale [25] - Management noted that credit losses are expected to tick up modestly, consistent with industry trends [31] Other Important Information - The company declared a quarterly cash dividend of $0.19 per share [27] - A strategic change in data storage and access is expected to enhance data analysis capabilities and leverage generative AI solutions [26] Q&A Session Summary Question: Insights on Anniversary Sale and Women's Category - Management indicated that the Anniversary Sale was on plan, with good performance in fall categories, particularly outerwear and sweaters [29] - Private brands showed strength across all categories, especially in women's apparel, providing confidence for future growth [30][31] Question: Inventory Position and Operational Optimization - Inventory levels were slightly over, primarily in the Rack, but management expressed confidence in the quality and content of the inventory [34] - Operational optimization efforts are focused on consistent merchandise flow and improved customer experience through faster processing of inbound merchandise [36][37] Question: Rack Store Performance and Future Openings - New Rack stores are performing well, with a consistent return on investment and plans to continue opening new stores [47][48] - The company expects to open 12 more Rack stores this year, maintaining a steady growth trajectory [48] Question: Gross Margin and Technology Impact - Management noted that gross margin expansion was driven by strong regular price sales and effective vendor negotiations, with no specific margin impact from the Anniversary Sale [41][43] - The transition to a new cost accounting method is expected to have a minor timing impact on gross margin and inventory [69][70] Question: Performance of Designer Category - The designer category has faced challenges, with management focusing on maintaining advantageous inventory levels to avoid being caught in a tough spot [60] - The company is actively collaborating with vendor partners to navigate the current market conditions [60] Question: Overall Performance During Anniversary Sale - The Anniversary Sale performed solidly, with good sell-through and regular price sales year-over-year, particularly in women's apparel [72][70]

Tuesday, August 27th, 2024 Three out of the four major stock market indexes closed Tuesday's session flat as a pancake. Such is trading life in the last week of August, typically. The Dow set a new record closing high, a mere 18 points above where it closed yesterday, +0.05%. Both the Nasdaq and S&P 500 finished the day up +0.17%. Only the small-cap Russell 2000 came in -0.66% lower on the session. What's notably more exciting are the earnings reports after the bell. We're still a day away from what might b ...

Nordstrom (JWN) reported $3.89 billion in revenue for the quarter ended July 2024, representing a year-overyear increase of 3.2%. EPS of $0.96 for the same period compares to $0.84 a year ago. The reported revenue represents a surprise of +1.15% over the Zacks Consensus Estimate of $3.85 billion. With the consensus EPS estimate being $0.74, the EPS surprise was +29.73%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street exp ...

Nordstrom (JWN) came out with quarterly earnings of $0.96 per share, beating the Zacks Consensus Estimate of $0.74 per share. This compares to earnings of $0.84 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 29.73%. A quarter ago, it was expected that this department store operator would post a loss of $0.08 per share when it actually produced a loss of $0.24, delivering a surprise of -200%. Over the last four quarters, the c ...

Nordstrom on Tuesday posted earnings that blew past Wall Street's expectations, indicating the department store is making strides in its efforts to cut costs and boost efficiencies. Though the Seattle-based retailer posted earnings per share that were 25 cents higher than expected, it issued tepid guidance for the full year. Nordstrom now expects adjusted earnings per share to be between $1.75 and $2.05, compared to a previous range of $1.65 to $2.05. It anticipates sales will be in a range of a 1% decline ...

Entrance to Nordstrom's Department Store (Photo by � Greg Smith/CORBIS/Corbis via Getty Images) Corbis via Getty Images Nordstrom is scheduled to report earnings after Tuesday's close. The stock hit a record high of $83.16/share in 2015 and is currently trading near $21/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting: ...

Nordstrom, Inc. JWN is set to release earnings results for its second quarter, after the closing bell on Tuesday, Aug. 27. Analysts expect the Seattle-based company to report quarterly earnings at 72 cents per share, down from 84 cents per share in the year-ago period. Nordstrom projects to report quarterly revenue of $3.9 billion for the quarter, according to data from Benzinga Pro. On Aug. 21, Nordstrom's board approved a quarterly dividend of 19 cents per share payable on Sept. 18, to shareholders of rec ...

As part of its store expansion strategy, Nordstrom, Inc. (JWN) unveils a plan to open a new Nordstrom Rack in Surprise, AZ, in fall 2025. The new store, covering a 26,000-square-foot area, will be located in Prasada North, a famous shopping center that also includes Target and Starbucks. The addition of the new store is set to serve the Surprise community with a wide array of high-quality brands at competitive prices. The evolution of Nordstrom Rack in Surprise will bring exciting fashion options to meet th ...

The upcoming report from Nordstrom (JWN) is expected to reveal quarterly earnings of $0.75 per share, indicating a decline of 10.7% compared to the year-ago period. Analysts forecast revenues of $3.85 billion, representing an increase of 2.1% year over year. The current level reflects a downward revision of 7.4% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period. P ...