NEW YORK (AP) – Nordstrom on Thursday reported that its sales and profits fell in its fiscal second quarter, joining its department store peers coping with shoppers’ cautious spending.
But its results still topped Wall Street expectations. The Seattle-based upscale department store reaffirmed its financial annual outlook that calls for a sales decline for the year.
After initially rising, its stock was down about two per cent in after-markets trading on Thursday.
Nordstrom’s sales were affected by the timing of the company’s anniversary sale, with one week falling into the third quarter this year compared to one day in 2022. Moreover, last year’s results included a full quarter of sales from its Canadian operations, which the company wound down in June of this year.
Nordstrom reported net income of USD137 million, or 84 cents per share, for the quarter ended July 29. That compares with USD126 million, or 77 cents per share, in the year-ago period.
Total sales fell 7.9 per cent to USD3.77 billion from USD4.09 billion in the quarter. Analysts were expecting 45 cents per share on USD3.67 billion, according to FactSet.
Nordstrom said that it saw improvement in many areas. For example, children’s and men’s clothing performed better than average at both the Nordstrom stores and Nordstrom Rack.
Women’s clothing improved sequentially from the first quarter. The chain said that inventories are down 18 per cent from a year ago.
Nordstrom said it expects a revenue decline between four per cent to six per cent for the year compared with a year ago. It also expects earnings per share of between USD1.80 per share to USD2.20 per share for the year, excluding charges related to the wind-down of its Canadian operations.
Analysts expect USD1.98 per share, according to FactSet.
Its results follow Kohl’s, which reported on Wednesday that profits dropped nearly 60 per cent due to weak second-quarter sales.
On Tuesday, Macy’s said it was forced to discount its spring goods to make room for fall and holiday merchandise in the face of customers’ muted spending.
