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May 04, 2024
Nordstrom Q1 2025 Earnings Report
Nordstrom reported a net loss of $39 million for the first quarter of 2024, with total revenues of $3.335 billion.
Key Takeaways
Nordstrom, Inc. reported a net loss of $39 million for the first quarter of 2024, or $0.24 loss per share. Total revenues increased to $3.335 billion, up from $3.181 billion in the same period last year, driven by strong sales growth at both Nordstrom and Nordstrom Rack banners.
Total Company net sales increased 5.1% and comparable sales increased 3.8% compared to the same period in fiscal 2023.
Nordstrom Rack banner net sales increased 13.8% and comparable sales increased 7.9% compared to the same period in fiscal 2023.
Gross profit, as a percentage of net sales, decreased 225 basis points to 31.6% due to timing matters related to loyalty activity, reserves, external theft, and inventory cleanup.
Ending inventory decreased 6.3% compared to the same period in fiscal 2023, despite a 5.1% increase in sales.
Nordstrom
Nordstrom
Nordstrom Revenue by Segment
Revenue by Segment
Nordstrom Revenue
CapyFin.comNordstrom Rack Revenue
CapyFin.com Forward Guidance
The Company reaffirmed its financial outlook for fiscal 2024, expecting revenue to range from a 2.0% decline to a 1.0% growth, and comparable sales to range from a 1.0% decline to a 2.0% growth.
Positive Outlook
- Reaffirmed fiscal 2024 outlook.
- Revenue range, including retail sales and credit card revenues, of 2.0 percent decline to 1.0 percent growth versus the 53-week fiscal 2023.
- Comparable sales range of 1.0 percent decline to 2.0 percent growth versus 52 weeks in fiscal 2023.
- EBIT margin of 3.5 to 4.0 percent of sales.
- Earnings per share (“EPS") of $1.65 to $2.05, excluding the impact of share repurchase activity.
Challenges Ahead
- Revenue range includes an approximately 135 basis point unfavorable impact from the 53rd week.
- No specific negative guidance points were explicitly stated beyond the potential for revenue decline.
- Profitability fell short of expectations in Q1 2024.
- Gross profit constrained due to timing and other factors.
- Income tax rate of approximately 27 percent.
Revenue & Expenses
Visualization of income flow from segment revenue to net income