Nordstrom, Inc. reported second-quarter net sales were $3.49 billion, up 3.4 percent from the corresponding period in fiscal 2023, and the company’s total revenue increased 1.9 percent year-over-year. With the third quarter shifting by one week from the second quarter to the third quarter, the timing of the Anniversary Sale had a positive impact of approximately 100 basis points on net sales compared to 2023.

Gross merchandise value (GMV) increased by 3.5 percent in the quarter.

• Nordstrom’s net sales and comparable sales each increased 0.9 percent year over year. GMV increased 1.1 percent.
  • The timing of the Anniversary Sale had a positive impact on Nordstrom’s net sales compared to the second quarter of 2023 by approximately 200 basis points.
• Nordstrom Rack’s net sales increased 8.8 percent And Comparable sales increased by 4.1 percent compared to the previous year.
• Digital sales increased 6.2 percent compared to the corresponding second quarter of fiscal year 2023.
  • The timing of the Anniversary Sale had a positive impact on the company’s digital sales by approximately 100 basis points compared to the second quarter of 2023.
  • Digital sales accounted for 37 percent of total sales this quarter.

In the second quarter, Nordstrom said active, women’s apparel, beauty and kids saw the strongest growth compared to 2023. During the anniversary sale, which fell one day into the third quarter (compared to eight days in 2023), the fastest-growing categories were beauty, active and home.

“We are excited about the Anniversary Sale and the enthusiastic response from our loyal customers. They were very engaged throughout the event and responded positively to our assortment, experience and service,” said Pete Nordstrom, President of Nordstrom, Inc. “We appreciate our team’s ongoing efforts to help our customers feel and look their best.”

The company’s total net sales increased 3.4 percent and comparable sales increased 1.9 percent compared to the same period in fiscal 2023. GMV increased 3.5 percent. The timing shift of the anniversary sale, which fell by one day into the third quarter of 2024, had a positive impact on net sales of approximately 100 basis points compared to the second quarter of 2023.

Gross margins were 36.6 percent of net sales in the second quarter, 160 basis points higher than in the second quarter of 2023.

Selling, general and administrative expenses were 34.4 percent of net sales for the quarter, compared to 32.8 percent in the second quarter of 2023.

The company reported net income of $122 million, or 72 cents per diluted share, compared to $137 million, or 84 cents per diluted share, in the second quarter of 2023.

Earnings before interest and taxes (EBIT) of $190 million. Excluding a charge primarily related to supply chain impairments, the company reported adjusted EBIT of $244 million and adjusted earnings per share of 96 cents per share.

“Our second quarter results were solid and we are encouraged by the continued sales strength in both businesses and the progress we are making in expanding gross margin and increasing profitability,” said Erik Nordstrom, CEO of Nordstrom, Inc. “We are confident in our outlook for the remainder of the year and look forward to maintaining the momentum we have built as we execute on our 2024 priorities.”

Shop update
So far, the company has opened eleven stores in the 2024 financial year:

At the end of the quarter, the company had the following branch numbers:

Outlook for the 2024 financial year
The Company has updated its financial outlook for fiscal year 2024 to include charges primarily related to the impairment of supply chain assets and related tax impacts in the second quarter, as well as the estimated impact of accelerated technology depreciation expected in the second half of fiscal year 2024:

Revenue range, including retail sales and credit card sales, of 1.0 percent decrease to 1.0 percent growth over the 53-week fiscal year 2023, which includes an unfavorable impact of approximately 135 basis points from the 53rd week.

Comparable sales range of flat to 2.0 percent growth compared to 52 weeks in fiscal year 2023.

• EBIT margin of 3.0 to 3.4 percent of sales;
• Adjusted EBIT margin of 3.6 to 4.0 percent of sales;
• Income tax rate of around 27 percent;
• Earnings per share (EPS) of $1.40 to $1.70, excluding any impact from share buybacks; and
• Adjusted EPS of $1.75 to $2.05, excluding any impact from share repurchases.

Image courtesy of Nordstrom, Inc.