Nordstrom surpassed earnings expectations in its fourth quarter of 2024, driven by effective cost management and digital sales growth, despite inventory and expense challenges.Nordstrom (JWN 0.17%), a fashion retailer known for its flagship stores and Nordstrom Rack discount outlets, reported its fourth quarter 2024 earnings on March 4, 2025. The company exceeded expectations with an adjusted earnings per share (EPS) of $1.10, compared to the consensus estimate of $0.93. Revenue came in at $4.32 billion, sl ...

Nordstrom (JWN) came out with quarterly earnings of $1.10 per share, beating the Zacks Consensus Estimate of $0.90 per share. This compares to earnings of $0.96 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 22.22%. A quarter ago, it was expected that this department store operator would post earnings of $0.23 per share when it actually produced earnings of $0.33, delivering a surprise of 43.48%.Over the last four quarters, t ...

Core Viewpoint - Nordstrom Inc. reported better-than-expected fourth-quarter earnings and is on track with its plan to go private later this year [1] Financial Performance - The department-store chain's stock remained flat early Tuesday following the earnings report [1] - CEO Erik Nordstrom noted that customers responded positively to the strength of the company's offerings across both banners in the fourth quarter [1]

Financial Performance - Fourth quarter net earnings were $165 million, or $0.97 per diluted share, with adjusted EBIT of $273 million and adjusted EPS of $1.10[2][3] - For fiscal year 2024, net earnings were $294 million, with EBIT of $495 million, representing 3.4% of sales; adjusted EBIT was $593 million, or 4.1% of sales[3][11] - Net earnings for the quarter were $165 million, representing a 23.1% increase from $134 million in the same quarter last year[22] - Adjusted EBIT for the year ended February 1, 2025, was $593 million, compared to $567 million in 2024, reflecting a growth of 4.6%[29] - Adjusted EPS for the year ended February 1, 2025, was $2.17, compared to $2.12 for the year ended February 3, 2024, indicating a year-over-year increase of 2.4%[31] - Net earnings for the four quarters ended February 1, 2025, were $294 million, compared to $134 million for the same period in 2024, representing a substantial increase of 119.4%[35] Sales and Revenue - Total Company net sales in the fourth quarter decreased 2.1% but increased 2.5% excluding the 53rd week in fiscal 2023; comparable sales increased 4.7%[4][13] - Nordstrom banner net sales decreased 3.7% in the fourth quarter, while Nordstrom Rack net sales increased 1.2%[4][13] - Digital sales represented 38% of total sales in the fourth quarter, with a decrease of 1.8% compared to the same period in fiscal 2023[13] - Net sales for the quarter ended February 1, 2025, were $4,204 million, a decrease of 2.1% compared to $4,293 million for the same quarter in 2024[22] - Total revenues for the year ended February 1, 2025, increased to $15,016 million, up 2.2% from $14,693 million in 2024[22] - Total net sales for the quarter ended February 1, 2025, were $4,204 million, a decrease of 2.1% from $4,293 million in the same quarter of 2024[32] - Nordstrom Rack net sales increased by 1.2% to $1,445 million for the quarter ended February 1, 2025, compared to $1,427 million in the same quarter of 2024[32] - Digital sales accounted for 38% of total net sales for both the quarter and year ended February 1, 2025, consistent with the previous year[32] Profitability and Margins - Gross profit margin increased to 37.3%, up 290 basis points year-over-year, primarily due to merchandise margin expansion[13] - The gross profit margin for the quarter was 37.3%, up from 34.4% in the same quarter last year[22] - Adjusted ROIC for the year ended February 1, 2025, was 9.3%, up from 8.5% for the year ended February 3, 2024[34] Cash Flow and Assets - Cash and cash equivalents at the end of the year increased to $1,035 million, compared to $628 million at the end of the previous year[26] - Total assets as of February 1, 2025, were $8,966 million, an increase from $8,444 million in 2024[24] - The company reported a net cash provided by operating activities of $1,267 million for the year, significantly higher than $621 million in the previous year[26] - The adjusted EBITDA for the year ended February 1, 2025, was $1,109 million, compared to $1,084 million in 2024, indicating a slight increase[29] - Free Cash Flow for the year ended February 1, 2025, was $747 million, significantly higher than $54 million for the year ended February 3, 2024[44] Inventory and Store Operations - Ending inventory increased 11.4% compared to the same period in fiscal 2023, driven by growth in top brands and higher in-transit inventory[13] - The Company opened 23 stores during fiscal 2024, increasing total store count to 377[15][16] Future Outlook and Transactions - A definitive agreement was reached to acquire all outstanding common shares not owned by the Nordstrom family and El Puerto de Liverpool, expected to close in the first half of 2025[14] - The Company is not providing a fiscal 2025 financial outlook due to the pending transaction[17] - The company anticipates continued growth and improvement in operational efficiency, although specific future guidance was not provided in the release[19] Other Notable Items - The company recognized a charge related to accelerated technology depreciation, impacting both SG&A and depreciation expenses, amounting to $0.07 per diluted EPS for the quarter ended February 3, 2024[30] - Adjusted debt to EBITDAR ratio was 2.8 for the four quarters ended February 1, 2025, indicating a stable leverage position[41]

Core Insights - Nordstrom, Inc. reported fourth quarter net earnings of $165 million, or $0.97 per diluted share, with adjusted EBIT of $273 million and adjusted EPS of $1.10, reflecting strong performance despite a slight decrease in total net sales [1][6][24] - For the fiscal year ended February 1, 2025, net earnings were $294 million, with an EBIT of $495 million, representing 3.4% of sales, and adjusted EBIT of $593 million, or 4.1% of sales [1][7][24] - The company experienced a 2.1% decrease in total net sales for the fourth quarter compared to the previous year, but comparable sales increased by 4.7% [1][6][26] Financial Performance - Fourth quarter total net sales were $4.204 billion, down from $4.293 billion in the same period last year, while full-year revenue increased by 2.2% to $14.557 billion [1][6][18] - Gross profit margin improved to 37.3%, up 290 basis points year-over-year, primarily due to merchandise margin expansion [6][18] - Selling, general and administrative expenses as a percentage of net sales increased to 34.4%, primarily due to higher labor costs and privatization fees [6][18] Sales and Growth - Nordstrom banner net sales decreased by 3.7% in the fourth quarter, while Nordstrom Rack net sales increased by 1.2% [1][6][26] - Digital sales represented 38% of total sales during the fourth quarter, indicating a strong online presence [6][26] - Women's apparel, activewear, and men's apparel showed the strongest growth in the fourth quarter [1][6] Strategic Developments - The company announced a quarterly cash dividend of $0.19 per share, payable on March 26, 2025 [2] - Cathy Smith will step down as CFO to join a global food services company, with a search for her replacement underway [3][4] - A definitive agreement was reached with the Nordstrom family and El Puerto de Liverpool for the acquisition of outstanding shares, expected to close in the first half of 2025 [8] Store Operations - Nordstrom opened 23 new stores during fiscal 2024 and plans to open additional locations in 2025 [9][11] - The company closed one Nordstrom store and three Nordstrom Rack stores during the fourth quarter [11] Liquidity and Capital Structure - The company ended the fiscal year with $1.8 billion in available liquidity, including $1.0 billion in cash [10] - Interest expense decreased to $22 million from $26 million in the same period last year, attributed to the redemption of $250 million in notes [10][18]

Core Viewpoint - Nordstrom, Inc. (JWN) is anticipated to report a decline in both revenue and earnings for the fourth quarter of fiscal 2024, with revenues expected to be $4.29 billion, reflecting a 2.9% decrease from the previous year [1]. Revenue and Earnings Estimates - The consensus estimate for earnings has decreased to 90 cents per share, indicating a 6.3% decline from 96 cents reported in the same period last year [2]. - The company has a trailing four-quarter negative earnings surprise of 30.03% on average [2]. Earnings Prediction - A positive Earnings ESP of +14.99% and a Zacks Rank of 2 (Buy) suggest a potential earnings beat for Nordstrom this quarter [3]. Digital and Operational Enhancements - Nordstrom is enhancing its digital capabilities to drive growth and improve customer engagement, which is expected to positively impact performance in the upcoming quarter [4]. - The company’s digital-first approach aims to better serve customers and expand market share [5]. Holiday Season Performance - For the holiday season, Nordstrom reported a total company net sales increase of 4.9% and a comparable sales increase of 5.8% for the nine-week period ending January 4, 2025, exceeding cautious expectations [6]. - Based on strong holiday shopping performance, Nordstrom has raised its fiscal 2024 sales outlook, indicating stronger revenue performance in the fourth quarter [7]. Fiscal 2024 Revenue Outlook - The company expects revenue growth of 1.5% to 2.5% for fiscal 2024, with Nordstrom Rack projected to grow 7.6% year over year, while Nordstrom banners are expected to decline by 0.9% [8]. - The absence of a 53rd week this year is expected to negatively impact the top line by 135 basis points [8]. Comparable Sales Growth - For fiscal 2024, comparable sales growth is expected to be between 2.5% and 3.5%, an increase from the prior outlook of 1% to 2% growth [9]. Operational Focus - Nordstrom is focused on enhancing customer experience through faster delivery and operational optimization, which are likely to aid fourth-quarter results [10]. Challenges Faced - The company is facing challenges such as competitive pressures, high operating costs, and inflation, which have led to elevated selling, general, and administrative (SG&A) expenses [11]. Stock Performance and Valuation - JWN shares have increased by 10.5% over the past six months, outperforming the broader industry growth of 4% [12]. - The stock is trading at a forward 12-month price-to-earnings ratio of 12.05x, compared to the industry average of 18.32x, indicating an attractive investment opportunity [12].

Core Viewpoint - Nordstrom (JWN) is expected to report a decline in quarterly earnings and revenues, with analysts revising their estimates downward, indicating potential challenges for the company in the upcoming earnings report [1][2][3]. Financial Performance Estimates - Analysts predict quarterly earnings of $0.90 per share, a decrease of 6.3% year-over-year [1]. - Revenues are forecasted to be $4.29 billion, reflecting a year-over-year decrease of 2.9% [1]. - The consensus EPS estimate has been revised 9.6% lower over the last 30 days, indicating a reevaluation of initial estimates by analysts [2]. Key Revenue Metrics - 'Revenues- Credit card revenues, net' are estimated at $121.07 million, showing a year-over-year decline of 4.7% [5]. - 'Revenues- Net sales' are projected to be $4.17 billion, indicating a change of -2.8% from the prior-year quarter [5]. - 'Total net sales- Nordstrom Rack' is expected to reach $1.44 billion, suggesting a year-over-year increase of 1.2% [5]. - 'Total net sales- Nordstrom' is anticipated to be $2.73 billion, reflecting a decrease of 4.9% from the previous year [6]. Store Metrics - The projected 'Number of stores - Total (EOP)' is expected to reach 381, compared to 359 a year ago [6]. Market Performance - Nordstrom shares have experienced a change of +0.5% in the past month, contrasting with a -2.2% move of the Zacks S&P 500 composite [7]. - With a Zacks Rank 2 (Buy), Nordstrom is expected to outperform the overall market in the near future [7].

Core Viewpoint - Nordstrom, Inc. will report its fourth quarter 2024 financial results on March 4, 2025, and will not host a conference call due to a pending acquisition [1] Group 1: Financial Reporting - The fourth quarter 2024 financial results will be released after the close of financial markets on March 4, 2025 [1] - The company will not hold a conference call for this quarter's results due to the ongoing acquisition process [1] Group 2: Company Overview - Nordstrom, Inc. has a long-standing history since its inception as a shoe store in 1901, focusing on customer service [2] - The company operates over 350 locations, including Nordstrom, Nordstrom Local, and Nordstrom Rack, as well as digital platforms through apps and websites [2] - Nordstrom is committed to providing convenience and connection for customers while aiming to leave a positive impact on the world [2]

Core Insights - Nordstrom, Inc. (JWN) is committed to expanding its store footprint, with plans to open a Nordstrom Rack in Longmont, CO, in the fall of this year [1] - The new 28,000-square-foot store will enhance the shopping experience in a popular retail area, providing high-quality products at great value [2] - Nordstrom Rack's sales advanced 10.6% year over year to $1.3 billion in the third quarter of fiscal 2024, with comparable sales rising 3.9% [3] Expansion Plans - The Longmont store will increase Nordstrom's presence in Colorado, where it currently operates two Nordstrom stores and eight Nordstrom Rack locations, supporting over 1,400 jobs statewide [4] - A new Nordstrom Rack is also planned for Lake Grove, NY, in fall 2025, aimed at expanding the company's footprint in the New York market [5] Customer Experience and Strategy - Nordstrom is enhancing customer experience through faster delivery and a digital-first strategy, focusing on market share expansion and profitable growth [6] - The company is working on improving efficiency in order fulfillment and plans to introduce more premium brands at Nordstrom Rack [7] Performance Metrics - JWN has seen a stock increase of 12.3% over the past six months, compared to the industry growth of 17.6% [8]

Core Insights - Nordstrom, Inc. plans to open a new Nordstrom Rack in Longmont, Colorado in fall 2025, expanding its presence in the state and enhancing customer access to its offerings [1][2] - The new store will be 28,000 square feet and located in Harvest Junction, a shopping center that includes various popular retailers, indicating a strategic choice for location [1][2] - Nordstrom Rack is a key component of the company's "Closer to You" strategy, which aims to provide a seamless shopping experience across physical and digital platforms [2] Company Expansion - The new Nordstrom Rack location will increase the company's physical footprint in Colorado, where it currently operates two Nordstrom stores and eight Nordstrom Rack stores, contributing to over 1,400 jobs statewide [3] - The addition of Nordstrom Rack is expected to enhance the shopping experience in Longmont by offering high-quality items at significant discounts, up to 70% off on various products [2] Community Engagement - Nordstrom has a commitment to community investment, having donated over $2 million in the past four years to support its partnership with Big Brothers Big Sisters of the United States, focusing on mentorship and community support [4] Company Overview - Nordstrom, Inc. has a long-standing heritage of customer service since its inception as a shoe store in 1901, and it continues to prioritize customer convenience through an interconnected shopping model [5] - The company operates over 350 locations, including Nordstrom, Nordstrom Local, and Nordstrom Rack, alongside digital platforms [5] Real Estate Context - Pine Tree, the owner of Harvest Junction, is a national retail real estate company with a portfolio valued at $2.5 billion and 17 million square feet of open-air retail space across the United States [6]