Nordstrom shares tick higher after the luxury retailer racked up a Q4 earnings beat
Nordstrom wrapped up a stronger-than-expected fourth quarter, with a helpful boost from its Rack division.
Shares of Nordstrom ticked higher on Tuesday afternoon, bucking the broader market’s volatility, after the luxury retailer dropped its latest quarterly results.
Fourth-quarter revenue came in at $4.32 billion, narrowly topping Wall Street’s estimate of $4.30 billion. Adjusted earnings per share for the quarter hit $1.10, topping the $0.96 analysts polled by FactSet were expecting. Meanwhile, comparable sales climbed 4.7%. Analysts had been expecting a 1.8% decline.
While Nordstrom felt pressure both online and at its banner stores, its off-price Rack division stood out as a bright spot. The Nordstrom banner saw a 3.7% dip in net sales for the quarter, but when excluding an extra 53rd week of the calendar, sales actually grew by 0.5%. On the other hand, Nordstrom Rack posted a 1.2% increase in net sales, jumping nearly 7% when excluding the extra week. Nordstrom’s been ramping up its off-price expansion, opening nearly two dozen new Rack locations across the US last year.
This report marks one of the last public updates from Nordstrom. In December, the retailer signed a $6.25 billion deal to go private, backed by the Nordstrom family and El Puerto de Liverpool. Nordstrom also announced the departure of CFO Kathy Smith, who will be joining Starbucks as its CFO after working at Nordstrom since 2023.
