Key Takeaways
- Nordstrom reported a wider-than-expected loss for the first quarter but beat analysts’ estimates for revenue as sales at its off-price Nordstrom Rack stores surged.
- Nordstrom Rack sales jumped 13.8% from the year-ago period, with comparable store sales rising 7.9%.
- Shares of Nordstrom fell before turning higher in early trading Friday following the news.
Nordstrom (JWN) reported a wider-than-expected loss for the first quarter but beat analysts’ estimates for revenue as sales at its off-price Nordstrom Rack stores jumped. Shares of Nordstrom initially fell before turning higher in early trading Friday.
Nordstrom posted a first-quarter loss of $39 million or 24 cents per share, narrowing from a loss of $205 million or $1.27 per share in the year-ago period, but wider than analysts anticipated. Revenue grew 4.8% from a year ago to $3.34 billion, beating forecasts.
Double-Digit Jump in Nordstrom Rack Sales
Sales at its off-price Nordstrom Rack stores jumped 13.8% to $1.18 billion. For Nordstrom’s banner stores, sales were up 0.6% to $2.04 billion. The company noted that net sales were negatively impacted by its moves to wind down its Canadian operations.
Comparable store sales rose 3.8%, led by a 7.9% gain for Rack stores. Nordstrom comparable store sales were 1.8% higher.
Nordstrom noted sales of active wear as well as children’s and women’s apparel increased by double-digit percentages compared to the same period a year earlier, and beauty product sales were up by a high-single-digit percent.
CEO Erik Nordstrom said while profitability fell short of expectations, the company was pleased with its sales growth, especially “the progress our Rack banner is making.”
Nordstrom shares were up 4.3% at $21.93 as of 11:20 a.m. ET Friday. They’ve gained over 18% since the start of the year.
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