11.1 C
New York

Nordstrom (JWN) reports Q2 2022 results


Shoppers leave a Nordstrom store on May 26, 2021 in Chicago, Illinois.

Scott Olson | Getty Images News | Getty Images

Nordstrom on Tuesday slashed its financial forecast for the total yr because the department store chain faces a glut of inventory and slowing demand.

The retailer’s lowered forecast got here at the same time as it reported fiscal second-quarter earnings and sales ahead of analysts’ estimates. Its shares were down 14% in prolonged trading. Earlier within the day, Macy’s also slashed its full-year outlook, saying it expects that deteriorating consumer spending on discretionary items like apparel will force it to make use of heavy markdowns to maneuver items off shelves.

“Customer traffic and demand decelerated significantly starting in late June, predominantly at Nordstrom Rack,” Nordstrom CEO Erik Nordstrom said in an announcement. “We’re adjusting our plans and taking motion to navigate this dynamic within the short term, including aligning inventory and expenses to recent trends.”

Nordstrom now sees annual sales, including bank card revenue, up 5% to 7%, compared with a previous range calling for a 6% to eight% increase. It’s calling for adjusted earnings per share to be in a variety of $2.30 to $2.60, down from a previous forecast of $3.20 to $3.50.

Analysts had been on the lookout for adjusted earnings per share of $3.04, with year-over-year revenue growth of 6.7%, in keeping with Refinitiv data.

Here’s how Nordstrom did in its fiscal second quarter compared with what analysts were anticipating, based on Refinitiv estimates:

  • Earnings per share: 81 cents adjusted vs. 80 cents expected
  • Revenue: $4.1 billion vs. $3.97 billion expected

Nordstrom’s net income within the three-month period ended July 30 grew to $126 million, or 77 cents a share, from $80 million, or 49 cents a share, a yr earlier.

Sales rose to $4.10 billion from $3.66 billion; digital sales rose 6.3%, making up 38% of total revenue.

Nordstrom said its men’s apparel division had the¬†strongest growth versus 2021, with footwear, women’s clothing and wonder booking double-digit gains as shoppers looked for outfits for special occasions.

Net sales for the Nordstrom banner grew 14.7%, boosted partially by the timing of the corporate’s annual anniversary sale. At Nordstrom Rack, the corporate’s off-price banner, net sales rose 6.3% from the prior yr but were down compared with pre-pandemic levels.

Nordstrom Rack targets more lower-income customers than the corporate’s full-price banner, and people shoppers have been pressured by rising inflation.

Management said on a conference call Tuesday that it plans to reset the merchandise at Nordstrom Rack to incorporate more of the premium brands that shoppers are on the lookout for.

Companywide inventory levels increased nearly 10% compared with the year-ago period.

Get the latest Sports Updates (Soccer, NBA, NFL, Hockey, Racing, etc.) and Breaking News From the United States, United Kingdom, and all around the world.

Related articles


Recent articles