Nordstrom reported mixed results in the first quarter of 2024, kicking off the year with top-line growth but missing profitability expectations.
Net sales in the first quarter increased 5.1 percent to $3.22 billion, up from $3.06 billion the same period in fiscal 2023, the Seattle-based department store chain reported Thursday.
However, Nordstrom saw a first-quarter net loss of $39 million, or 24 cents per share, which narrowed from $205 million, or $1.27 per share, a year ago. Analysts surveyed by FactSet were looking for a loss of 7 cents per share.
By business segment, the Nordstrom banner reported net sales up 0.6 percent year-over-year to just over $2 billion, while net sales for Nordstrom Rack in the first quarter increased 13.8 percent year-over-year to $1.18 billion.
Shares for the company were down more than 6 percent in after-market trading on Thursday evening.
Erik Nordstrom, chief executive officer of Nordstrom Inc., said in a statement that the positive sales growth across the company in the first quarter was “very encouraging,” and that he is particularly pleased about the progress at the company’s Rack banner. “While we’re pleased with our top-line growth, profitability fell short of our expectations,” Nordstrom said. “Looking ahead, our strong sales performance gives us momentum heading into the rest of the year and the confidence to reaffirm our 2024 guidance.”
Pete Nordstrom, president of Nordstrom Inc., added that the company is “set up well” going forward in regard to inventory health, both in managing levels and providing compelling content with good sell-through.
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“As we reflect on the legacy that our dad left behind, we’ve been reminded of his firmly held and consistent values—especially his commitment to serving our customers,” Pete Nordstrom said, referring to his father Bruce Nordstrom who passed away earlier this month. “Those values have been integral to Nordstrom’s growth, and they remain at the core of the decisions we make as a company. We want to thank our teams for bringing our values to life as we stay focused on our priorities for 2024.”
Looking ahead, the company is reaffirming its financial outlook for fiscal 2024. Nordstrom expects revenue, including retail sales and credit card revenues, to range between a 2 percent decline to 1 percent growth, versus the 53-week fiscal 2023, which includes an approximately 135-basis-point unfavorable impact from the 53rd week. Earnings per share for the year are expected to be between $1.65 and $2.05.