Business

Nordstrom (JWN) reports Q1 2022 loss


Nordstrom On Tuesday, fiscal first-quarter revenue came in ahead of analysts’ expectations and boosted its full-year outlook, citing business momentum as shoppers head to the company’s department stores to refresh. Their wardrobe with brands and designer shoes.

Nordstrom now sees fiscal 2022 revenue, including credit card sales, up 6% to 8%, compared with the previous range of 5% to 7% growth.

It forecast earnings per share, excluding the impact of any share buybacks, between $3.38 and $3.68, up from the previous range of $3.68. .15 dollars to 3.50 dollars. On an adjusted basis, it is expected to earn between $3.20 and $3.50 a share.

Its shares jumped about 6% in after-hours trading on the news.

Optimistic outlook contrasts with retailers like Target, Kohl’s, Abercrombie & Fitch and several others in recent days have reverted to their annual forecasts as supply chain and other costs eat into profits. But Nordstrom’s business doesn’t run in tandem with other retailers either.

For example, last fall, when many retailers saw their sales rebound above pre-pandemic levels, Nordstrom is still working to do so. Now, as retailers like Macy’s make year-to-year comparisons harder, Nordstrom is building on a lower base.

CEO Erik Nordstrom said the company has been able to capitalize on demand from people who are shopping for “long-awaited occasions” as pandemic restrictions fade and invitations resume to weddings , reunions and other social gatherings.

However, the retailer recorded an adjusted loss per share that was slightly wider than what analysts were looking for.

This is how Nordstrom did it in its fiscal first quarter compared to what Wall Street predicted, based on a Refinitiv survey:

  • Loss per share: Adjusted 6 cents against the expected 5 cents
  • Turnover: $3.57 billion vs. $3.28 billion expected

Nordstrom reported net income for the three-month period ended April 30 of $20 million, or 13 cents a share, compared with a net loss of $166 million, or $1.05 for per share, one year prior.

Nordstrom lost 6 cents a share on an adjusted basis, excluding the gain from the sale of the company’s interest in a corporate office building and the cost of losses related to the Company’s assets. Trunks club. That loss per share was a cent wider than what analysts were looking for.

Total revenue, including credit card sales, rose to $3.57 billion from $3 billion a year earlier. That beat expectations of $3.28 billion.

At Nordstrom’s eponymous banner, net sales rose 23.5 percent, surpassing pre-pandemic levels. Net revenue at Nordstrom Rack increased 10.3% but was still below 2019 levels, the company said.

Nordstrom Rack, competes with discount chains like TJX, Ross Store and Macy’s Behind the scenes, it has struggled more during the pandemic to secure merchandise from other retail brands, which it can then sell at a low price. In April, Nordstrom announced the plan Rack business rationalization to better fit its full price group.

Digital sales were flat year-over-year, as shoppers cut back on their online spending and returned to stores. E-commerce accounted for 39% of total sales, compared with 46% a year earlier.

Nordstrom says its metropolitan stores, including its flagship location in New York City, were the most active in the quarter, as workers moved offices back into nearby office buildings and customer traffic Tourism increased again.

The company ended the three-month period with a 23.7% increase in inventory from a year earlier, partly because Nordstrom ordered more stock to build a stockpile ahead of its Anniversary Sale. upcoming year.

Also on Thursday, Nordstrom announces that it will start selling shoes soon from Allbirdsmaking it one of the sneaker brand’s few sustainable third-party retail partners.

This story is evolving. Please check back for updates.



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