#United States #Seattle #Nordstrom #Q4 2024 #Earnings

Nordstrom Reports Fourth Quarter Earnings for 2024

On March 4, 2025, Nordstrom, Inc. (NYSE: JWN) released its financial results for the fourth quarter of fiscal 2024. The retail giant reported a net earnings figure of $165 million, translating to $0.97 per diluted share (EPS). The company's earnings before interest and taxes (EBIT) stood at $242 million, showcasing resilience in a competitive retail landscape. When accounting for certain adjustments, the adjusted EBIT was reported at $273 million, and the adjusted EPS came in at $1.10.

Key Financial Highlights

During the fiscal year ending February 1, 2025, Nordstrom recorded net earnings totaling $294 million, with an EPS of $1.74 and EBIT amounting to $495 million. This was equated to about 3.4 percent of total sales. Notably, after excluding charges associated with a supply chain asset impairment, accelerated technology depreciation, and privatization fees, the adjusted EBIT rose to $593 million or 4.1 percent of sales.

For the 13-week period in Q4 2024, total net sales saw a dip of 2.1 percent compared to the prior year's extended 14-week period. However, if we exclude the additional $190 million from the 53rd week of 2023, the sales would have shown an increase of 2.5 percent. The gross merchandise value (GMV) also reflected a minor decline at 0.2 percent.

Sales Growth Trends

A positive trend was observed in comparable sales, which surged by 4.7 percent from the same period in the previous fiscal year. This growth includes a 5.3 percent increase for the Nordstrom banner and a 3.5 percent increase at Nordstrom Rack. Erik Nordstrom, the company’s CEO, commented on customer reactions, stating, “Customers responded positively to the strength of our offering across both banners in the fourth quarter.”

The standout categories for growth included women's apparel, activewear, and men's apparel, reflecting shifting consumer preferences. The fiscal year has corroborated this trend with solid performances in women’s apparel, kids' clothing, and footwear also contributing significantly to overall sales distribution.

Special Dividend Announcement

As an acknowledgment of its robust performance, the board of directors declared a quarterly cash dividend of $0.19 per share, which is slated for payment on March 26, 2025, to shareholders on record as of March 11, 2025. The announcement further solidifies Nordstrom’s commitment to providing returns to its shareholders amid positive growth.

Leadership Transition

A significant change in leadership was also highlighted, as Cathy Smith, the current CFO, announced her intention to step down to accept a position with a global food services company. This transition will occur following the filing of the Annual Report for the fiscal year. The company has commenced a search for her successor, taking into account the importance of financial leadership during this transitional phase.

Store Performance and Future Outlook

The retailer opened 23 new stores during fiscal 2024, illustrating its ongoing expansion strategy. As of February 1, 2025, Nordstrom operates 92 full-line stores, 277 Nordstrom Rack locations, and several local service hubs, culminating in a total of 377 store fronts across the nation.

Digital sales accounted for 38 percent of total sales in the fourth quarter, reflecting the increased shift towards online shopping and the company's adaptability in meeting customer demand both in-store and online. This figure is consistent with sales from the previous year, marking a stable revenue stream from digital platforms.

Conclusion

With impressive fourth quarter results coupled with strategic expansions and continued adaptability to consumer trends, Nordstrom, Inc. is poised for a competitive but rewarding market stance in the retail landscape. The company's leadership remains committed to utilizing its interlinked model to cater to evolving customer needs as it navigates through fiscal 2025 and beyond.