Nordstrom Q4 Earnings Beat Estimates, Comparable Sales Rise 4.7%

Core Insights - Nordstrom, Inc. (JWN) reported fourth-quarter fiscal 2024 results with earnings exceeding expectations but a decline in revenue compared to the previous year [1][2] Financial Performance - Adjusted earnings per share (EPS) were $1.10, surpassing the Zacks Consensus Estimate of $0.90, and reflecting a 14.6% increase from $0.96 in the same quarter last year [2] - Total revenues amounted to $4.32 billion, a 2.1% decline year over year, missing the consensus estimate of $4.33 billion [4] - Net sales for the Nordstrom banner decreased 3.7% to $2.76 billion, while sales at Nordstrom Rack increased 1.2% to $1.45 billion [6][7] Sales and Growth Metrics - Comparable sales for the Nordstrom banner grew by 5.3%, while Nordstrom Rack saw a 3.5% increase [6][7] - Digital sales represented 38% of the company's net sales in the fiscal fourth quarter, although they fell 1.8% year over year [7] Profitability and Margins - Gross profit margin expanded by 290 basis points year over year to 37.3%, driven by merchandise margin expansion and improved shrink [8][10] - Adjusted selling, general and administrative (SG&A) expenses as a percentage of net sales were 33.7%, down 130 basis points year over year [11] Earnings Before Interest and Taxes (EBIT) - Adjusted EBIT rose 10.5% year over year to $273 million, with an adjusted EBIT margin expanding 240 basis points to 6.5% [12] Financial Health - As of February 1, 2025, Nordstrom had available liquidity of $1.8 billion, including $1 billion in cash and cash equivalents, and long-term debt of $2.6 billion [13] - The company generated $1.3 billion from operating activities and spent $516 million on capital expenditures in fiscal 2024 [14] Strategic Developments - Nordstrom reached an agreement to acquire all outstanding shares not already owned by the Nordstrom family and El Puerto de Liverpool, expected to close in the first half of 2025 [15]