A buyer leaves a Nordstrom store in Chicago, Illinois on May 26, 2021.
Scott Olson | Getty Images
Nordstrom shares fell Tuesday after the department store chain reported that sales in the second quarter of the fiscal year were below pre-pandemic levels.
Compared to the previous year, sales more than doubled as buyers used Nordstrom’s anniversary sale as a reason to go back to the mall and buy new shoes, clothes and sportswear. However, on a two-year basis, sales were down 6%.
Nordstrom was more optimistic about the rest of the year and raised its outlook on competitors Macy’s and Kohl’s, who had been doing the same thing for the past few days.
But its stocks lost more than 6% in expanded trading.
Here’s how Nordstrom performed for the quarter ended July 31st compared to Wall Street’s expectations, based on an analyst survey by Refinitiv:
- Earnings per share: 49 cents vs. 27 cents expected
- Revenue: $ 3.66 billion versus $ 3.36 billion expected
Nordstrom reported net income of $ 80 million, or 49 cents per share, compared to a loss of $ 255 million, or $ 1.62 per share, last year. Analysts were expecting a profit of 27 cents per share.
Revenue rose to $ 3.66 billion from $ 1.86 billion a year ago, beating estimates of $ 3.36 billion.
Total revenue from Nordstrom’s anniversary sales event increased 1% compared to 2019, the company said. Last year’s event was postponed to the third quarter due to the Covid pandemic.
“A compelling product range, combined with new and differentiated services and experiences, helped to strengthen customer loyalty and improve the financial results during our anniversary sale,” said President Pete Nordstrom in a press release.
Sales of the Nordstrom department store brand of the same name increased by 127% compared to the previous year, but declined by 5% on a two-year basis.
At Nordstrom Rack, an off-price division that competes with TJ Maxx and Macy’s Backstage, sales increased 61% from 2020, but increased 8% from 2019.
The company said its online sales were up 30% year over year, representing 40% of Nordstrom’s total business.
Nordstrom now expects annual sales to grow more than 35% after previously expected growth of 25%. According to Refinitiv, analysts were looking for a 30% increase.
As of Tuesday’s trading session, Nordstrom’s shares were up 21% year-to-date, bringing the retailer’s market cap to $ 6 billion.
The full press release on Nordstrom’s results can be found here.