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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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