Nordstrom Reports Fourth Quarter 2024 Earnings

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]