Nordstrom Q4 Earnings Report

Nordstrom's latest earnings report exceeded expectations, with adjusted earnings of 96 cents per share for the fiscal fourth quarter ending Feb. 3, surpassing projections. Despite the positive earnings, the stock took a hit in after-hours trading due to weaker full-year guidance that fell short of investor hopes.

Financial Highlights

• Gross Profit: Increased by 1.25 percentage points to 34.4%
• Revenue: Reached $4.4 billion, up 2.2% from the year-ago quarter
• Nordstrom Rack: Sales surged by 14.6%, reflecting consumer demand for value during the holiday season
• Store Openings: Nordstrom unveiled 19 new Rack stores in 2023

CEO Erik Nordstrom expressed confidence in the company's strategies to drive growth and profitability, emphasizing initiatives such as expanding Rack stores, digital growth, and boosting comp store sales.

Market Reaction and Forecast

However, despite these efforts, Nordstrom's stock dropped by 9.5% in after-hours trading following the announcement of fiscal year 2024 guidance. The company anticipates full-year revenue growth to range from a 2% decrease to a 1% increase year over year and earnings per share between $1.65 and $2.05.

Analysts' expectations were higher than Nordstrom's forecast, with the midpoint falling at $1.85 per share, below the projected $2.01. The discrepancy between projected and actual numbers contributed to the decline in share value.

As Nordstrom navigates the challenges ahead, the focus remains on executing key strategies to drive sustained growth and profitability in the coming years.