Nordstrom shares rise 10% on sharp second-quarter earnings drop, upbeat guidance By Investing.com

SEATTLE – Nordstrom, Inc. (NYSE: ) reported better-than-expected second-quarter earnings and revenue on Tuesday, sending its shares up 10% in after-hours trading.

The luxury retailer also gave an upbeat outlook for the full fiscal year, beating analysts’ estimates.

For the quarter ending August 3, 2024, Nordstrom reported adjusted earnings per share of $0.96, significantly beating the analyst consensus of $0.71. Revenues rose 3.4% from last year to $3.89 billion, slightly above the $3.88 billion expected by analysts.

The company’s total comparable sales were up 1.9% over the same period last year. Nordstrom’s flagship banner posted comparable sales growth of 0.9%, while Nordstrom Rack posted stronger comparable sales growth of 4.1%.

Digital sales were up 6.2% year over year, accounting for 37% of total sales for the quarter. The company noted that the change over time in its anniversary sales positively impacted net sales by approximately 100 basis points.

“Our second quarter results were solid, and we are encouraged by the continued strength of both banners and the progress we are making to expand gross margin and increase profitability,” said Erik Nordstrom, CEO of Nordstrom, Inc.

Looking ahead, Nordstrom provided an upbeat forecast for full-year earnings of $1.75 to $2.05 per share, with the midpoint of $1.90 beating analysts’ consensus of $1.76.

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