Nordstrom(US:JWN)2024-11-26 21:32Financial Performance - Nordstrom reported third quarter net earnings of $46 million, or EPS of $0.27, with adjusted EPS of $0.33[1] - Net earnings for the quarter were $46 million, a decrease of 31.3% from $67 million in the same quarter last year[14] - The company reported net earnings of $263 million for the four quarters ended November 2, 2024, compared to $119 million for the same period last year[29] - Adjusted EPS for the quarter was $0.33, compared to $0.25 in the previous year, representing a growth of 32%[22] Sales and Revenue - Total company net sales increased by 4.6% to $1.0 billion, while comparable sales rose by 4.0% compared to the same period in fiscal 2023[2] - Net sales for the quarter ended November 2, 2024, were $3,347 million, an increase of 4.6% compared to $3,200 million for the same period in 2023[14] - Total revenues for the nine months ended November 2, 2024, reached $10,692 million, up from $10,273 million in the prior year, reflecting a growth of 4.1%[14] - Nordstrom Rack net sales surged by 10.6%, with comparable sales increasing by 3.9% compared to the same period in fiscal 2023[2] - Nordstrom Rack's net sales increased by 10.6% for the quarter ended November 2, 2024, compared to a decrease of 1.8% in the previous year[24] Profitability Metrics - Adjusted EBIT for the third quarter was $97 million, while EBIT was $83 million, down from $102 million in the same period last year[4] - The EBIT margin for the quarter was 2.5%, down from 3.2% in the same quarter last year[22] - The gross profit margin increased to 35.6% for the quarter, up from 35.0% in the same quarter last year[14] - Adjusted EBITDA for the nine months ended November 2, 2024, was $727 million, compared to $697 million for the same period in 2023, indicating a growth of 4.3%[22] Cash Flow and Liquidity - Cash and cash equivalents at the end of the period were $397 million, a decrease from $628 million at the beginning of the period[18] - The company reported a net cash provided by operating activities of $371 million for the quarter, compared to $107 million in the same quarter last year[18] - Free Cash Flow for the nine months ended November 2, 2024, was $78 million, a significant improvement from a negative $231 million for the same period last year[34] Inventory and Expenses - Ending inventory increased by 5.9% compared to the same period in fiscal 2023, outpacing the 4.6% increase in sales[4] - Selling, general and administrative expenses as a percentage of net sales rose to 36.6%, primarily due to higher labor costs[4] Future Outlook - The company updated its fiscal 2024 outlook, projecting revenue growth of flat to 1.0% and comparable sales growth of 1.0% to 2.0%[8] - The expected adjusted EBIT margin for fiscal year 2024 is projected to be between 3.6% and 4.0%[26] - Expected adjusted EPS for fiscal year 2024 is forecasted to be between $1.75 and $2.05[26] - The income tax expense for the expected adjusted EPS outlook is estimated to be between 0.6% and 0.7% of net sales[26] Store Expansion - The company opened 23 new stores in fiscal 2024, expanding its total store count to 381 locations[5] Key Ratios - Adjusted ROIC for the four quarters ended November 2, 2024, was 8.8%, up from 8.1% for the four quarters ended October 28, 2023[29] - Adjusted debt to EBITDAR ratio is reported at 2.8, indicating a stable credit profile[31]