Nordstrom misses Wall Street’s earnings expectations as off-price chain Rack lifts sales

Earnings

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A Citibike docking station outside the Nordstrom flagship store in New York, US, on Wednesday, Feb. 21, 2024.
Bing Guan | Bloomberg | Getty Images

Nordstrom on Thursday fell short of Wall Street’s quarterly earnings expectations, as its off-price chain Rack outperformed the rest of its stores.

Despite the miss, the Seattle-based department store operator stuck by its full-year forecast.

Here’s what the retailer reported compared with what Wall Street was expecting, based on a survey of analysts by LSEG:

  • Loss per share: 24 cents vs. 8 cents expected
  • Revenue: $3.34 billion vs. $3.20 billion expected

Nordstrom shares slid about 7% in extended trading.

Nordstrom’s off-price chain, Nordstrom Rack, was the strongest performer in the quarter. Comparable sales for chain rose 7.9% year over year. The company’s main brand climbed 1.8%.

The chain reaffirmed that it expects earnings of $1.65 to $2.05 for the full fiscal year. Nordstrom anticipates full-year revenue will be in a range of a 2 percent decline to 1 percent growth from the prior year.

For its fiscal first quarter, Nordstrom posted a net loss of $39 million, versus a net loss of $205 million in the prior-year period. The company’s total revenue rose to $3.34 billion from $3.18 billion in the previous year.

The results come as the Nordstrom family again considers taking the company private. Last month, it said it formed a special committee to evaluate bids.

Nordstrom, like its department store rivals, is trying to win over young consumers as it relies on aging customers.

This is breaking news. Please check back for updates.

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