HomeEarningsNordstrom (JWN) Q3 2021 earnings miss, sales beat

Nordstrom (JWN) Q3 2021 earnings miss, sales beat

A consumer leaves a Nordstrom retailer on Could 26, 2021 in Chicago, Illinois.

Scott Olson | Getty Photographs

Nordstrom on Tuesday reported earnings that fell in need of analysts’ expectations as labor prices ate into earnings and gross sales and its Nordstrom Rack enterprise struggled to return to pre-pandemic ranges.

The information despatched its caught tumbling greater than 16% in prolonged buying and selling.

The division retailer chain has tried to reap the benefits of customers refreshing their wardrobes as folks return to workplaces and social occasions. Gross sales outpaced Wall Road estimates within the third quarter, however the firm solely reiterated its income forecast for the yr.

The disappointing efficiency was in stark distinction to rivals Macy’s and Kohl’s, which final week boosted estimates for the rest of the yr. Each corporations have been extra profitable in passing alongside larger prices to customers and thoroughly managing stock.

Chief Government Officer Erik Nordstrom mentioned the corporate wants to maneuver extra shortly to capitalize on its strengths and enhance its market share.

“We’re targeted on accelerating our transformation and enhancing outcomes,” Erik Nordstrom mentioned in a press launch.

This is how Nordstrom did within the three-month interval ended Oct. 30 in contrast with what analysts have been anticipating, utilizing Refinitiv information:

  • Earnings per share: 39 cents vs. 56 cents anticipated
  • Income: $3.64 billion vs. $3.55 billion anticipated

Internet earnings rose to $64 million, or 39 cents per share, from $53 million, or 34 cents a share, a yr earlier. Analysts had been in search of per-share earnings of 56 cents, based on a Refinitiv survey.

Income, together with bank card gross sales, climbed to $3.64 billion from $3.09 billion a yr earlier, topping expectations for $3.55 billion. However that is nonetheless down barely from the $3.67 billion Nordstrom reported within the third quarter of 2019.

At Nordstrom’s namesake division retailer model, income rose 11% from a yr in the past and climbed 3% on a two-year foundation. Extra clients got here to its shops, and customers spent extra per buy. Nordstrom cited house items, lively attire, designer manufacturers and wonder as areas of energy.

At Nordstrom Rack, an off-price division that competes with TJ Maxx and Macy’s Backstage, gross sales have been up 35% from 2020 however fell 8% from 2019.

The corporate mentioned it is taking steps to enhance Rack’s efficiency, together with investing in elevating model consciousness, higher managing stock ranges and balancing costs to place them in nearer alignment with customers’ expectations.

Digital gross sales rose 12% yr over yr, representing 40% of the enterprise. Nordstrom famous that final yr its annual Anniversary Sale, which takes place primarily on-line but in addition in shops, was moved totally into the third quarter, whereas this yr it solely fell throughout one week of the quarter.

Nordstrom mentioned its stock ranges grew 13% in contrast with the identical interval in 2019, as a result of division retailer operator pulling ahead some orders of products to attempt to mitigate ongoing provide chain bottlenecks.

It nonetheless expects annual income, together with bank card gross sales, to develop greater than 35% from final yr. Analysts had been in search of a 36% enhance, based on Refinitiv.

Nordstrom’s inventory is up lower than 1% yr to this point, as of Tuesday’s market shut. Its market cap is about $5.1 billion.

Discover Nordstrom’s full earnings press launch right here.

This story is growing. Please examine again for updates.

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