Nordstrom tops quarterly revenue estimates as newer products boost demand

By Thomson Reuters May 30, 2024 | 3:08 PM

(Reuters) -Nordstrom beat Wall Street expectations for first-quarter revenue on Thursday, as the department store chain’s efforts to stock up shelves with fresher clothing and footwear offerings helped drive demand.

The retailer in order to address its merchandising issues has made attempts to bring in more in-demand clothing at its namesake brand by offering tailored classics along with minimalist pieces like oversized blazers, tailored pants, cropped jackets and dresses.

Sales at the company’s eponymous label recorded a 0.6% rise. Discount banner Rack’s sales rose 13.8% as Nordstrom pushes ahead with plans of opening more of its stores in a bid to attract lower-income consumers.

During the quarter, Nordstrom also put up numerous shop-in-shop and online offerings of Liberty London and SKIMS by partnering with them to feature their products.

Nordstrom has also been opening shelf spaces for brands like Birkenstock and Prada Beauty to drive customer traffic by enhancing the products its stores offer as these continue to be consumer favorites.

The company’s better-than-feared sales result is in contrast with peers Macy’s and Kohl’s, which are finding it difficult to attract customers and are also fixing merchandising issues at their stores.

However, Nordstrom reaffirmed its 2024 comparable sales forecast of a 1% drop to a 2% rise and annual profit per share of $1.65 to $2.05.

Shares of Nordstrom dropped 4% to $20.20 after the bell.

The department store operator’s first-quarter total revenue rose 4.8% to $3.34 billion, compared to LSEG expectations of a 0.6% rise to $3.20 billion.

The company’s quarterly net loss narrowed to $39 million, or 24 cents per share, from $205 million, or $1.27 per share, a year ago.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Maju Samuel)