A buyer leaves a Nordstrom store on May 26, 2021 in Chicago, Illinois.
Scott Olson | Getty Images
Shares of Nordstrom fell on Tuesday after the department store chain reported second-quarter tax sales remained below pre-pandemic levels.
Compared to the previous year, sales doubled as shoppers used Nordstrom’s birthday sale as a reason to return to the mall and enjoy new active shoes, dresses and clothing. But over a two-year period, revenue fell 6%.
Nordstrom felt more optimistic about the rest of the year and raised its outlook, following rivals Macy’s and Kohl’s who did the same in recent days.
But its shares fell more than 6% in expanded trading.
This is how Nordstrom did during the quarter ended July 31 compared to what Wall Street expected, based on a survey by Refinitiv analysts:
- Earnings per share: 49 cents vs. 27 cents expected waiting
- Revenue: $ 3.666 billion versus $ 3.366 billion projected
Nordstrom reported a net profit of $ 80 million, or 49 cents per share, compared to a loss of $ 255 million, or $ 1.62 per share, a year earlier. Analysts had expected earnings of 27 cents per share.
Revenue rose to $ 3.666 billion, from $ 1.866 billion a year earlier, exceeding estimates of $ 3.366 billion.
Total sales of Nordstrom’s anniversary sale event increased 1% compared to 2019, the company said. Last year’s event was pushed into the third quarter due to the circumstances of the Covid pandemic.
“An attractive assortment of merchandise, combined with new and differentiated services and experiences, helped strengthen customer engagement and improve financial results during our anniversary sale,” President Pete Nordstrom said in a press release.
At the eponymous Nordstrom department store brand, revenue rose 127% from a year earlier, but fell 5% in two years.
At Nordstrom Rack, an off-price division that competes with TJ Maxx and Macy’s Backstage, sales rose 61% from 2020, but fell 8% from 2019.
The company said its online sales increased 30% over the previous year, accounting for 40% of Nordstrom’s total business.
Nordstrom now expects its annual revenue to increase by more than 35%, compared to a previous outlook that called for 25% growth. According to Refinitiv, analysts had sought a 30% increase.
As of Tuesday’s closing date, Nordstrom shares have risen 21% to date, bringing the retailer’s market cap to $ 6 billion.
Here’s the full press release of Nordstrom’s earnings.