Nordstrom(JWN) - 2025 Q4 - Annual Results

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]