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Nordstrom Reports a Positive Q3 for 2024

Nordstrom, Inc. recently announced its financial results for the third quarter of 2024, showcasing a notable increase in net earnings and sales growth across its various retail banners. The company reported a net income of $46 million, equating to earnings per diluted share (EPS) of $0.27. When adjusted for a technology depreciation charge, its adjusted EPS reaches $0.33.

In terms of sales performance, Nordstrom's net sales rose by 4.6% compared to the same quarter last year, with total company comparable sales showing a 4.0% increase. Notably, its gross merchandise value (GMV) climbed by 5.3% during this time. This growth comes despite a planning shift of the very popular Anniversary Sale, which saw some sales activity shift from Q3 to Q2, impacting net sales by approximately 100 basis points.

The performance of Nordstrom’s banners demonstrated varied success, with sales from the Nordstrom Rack segment significantly standing out. Here, net sales rose by 10.6% year over year, alongside comparable sales increasing by 3.9%. The more traditional Nordstrom banner saw a more modest growth, with net sales increasing by 1.3% and comparable sales keeping pace with the overall company average at 4.0%.

CEO Erik Nordstrom emphasized the team's focus on creating a compelling shopping experience, noting that this commitment has resonated with customers. He stated, "The continued sales growth across the company and strong gross margin in the third quarter indicate our team's focus and efforts are working."

The report also highlighted robust categories, with women's apparel and activewear experiencing double-digit growth, while shoes, men's apparel, and children's wear showed mid- to high-single-digit growth rates.

Looking ahead, Nordstrom has affirmed its strategy to refine its product assortment and elevate customer engagement to fuel growth during the holiday season. The board of directors has also declared a quarterly dividend of $0.19 per share, payable on December 18, reaffirming the company's commitment to returning value to its shareholders.

Store Expansion Plans

Additionally, in a strategic move to enhance its retail footprint, Nordstrom has been busy opening new stores. As part of its expansion efforts, 23 new locations have been launched in fiscal 2024. Recent openings include stores in locations such as Pinole, CA, Snellville, GA, and Jacksonville Beach, FL. The company plans to continue this trend of growth with several more stores slated to open in 2025 across various states.

Financial Outlook

Despite challenges, Nordstrom remains optimistic about its financial framework moving forward. Adjustments to the fiscal outlook include revenue growth projections of flat to 1.0% against 2023 figures, alongside expectations of comparable sales growth of 1.0 to 2.0%. The adjusted EPS forecast stands at $1.75 to $2.05, made possible through careful financial management and strategic focus.

In summary, Nordstrom's third quarter results illustrate favorable trends in retail, defined by solid sales growth and strategic decisions focused on enhancing customer experiences. As it prepares for the holiday rush, the company retains a clear vision aimed at sustaining this positive momentum and further solidifying its place in the competitive retail market.