Nordstrom Reports 4.6% Net Sales Increase, Earnings Decline in Q3 Fiscal 2024

Nordstrom, Inc. reported its financial results for the third quarter of fiscal 2024, revealing a net sales increase of 4.6% to $3.347 billion, compared to $3.200 billion in the same period last year. The company's net earnings for the quarter were $46 million, or $0.27 per diluted share, down from $67 million, or $0.41 per diluted share, in the prior year. The decline in earnings was attributed to higher labor costs and a charge related to accelerated technology depreciation, which negatively impacted earnings per share by approximately $0.06. Adjusted earnings before interest and taxes (EBIT) for the quarter were $97 million, reflecting a significant increase from $77 million in the same quarter of 2023.

The company experienced a notable shift in its operational strategy, particularly with the wind-down of its Canadian operations, which was completed in March 2023. This transition had a negative impact on total company net sales of approximately 25 basis points for the nine months ended November 2, 2024. Nordstrom's digital sales remained stable, accounting for 34% of total net sales, with a 6.4% increase compared to the same quarter last year. The company also reported a 4.0% increase in comparable sales, driven by strong performance in women's apparel and activewear.

In terms of strategic developments, Nordstrom opened 12 new Nordstrom Rack stores during the third quarter, bringing the total to 23 new stores year-to-date. The company emphasized its commitment to enhancing customer experience through improved online and in-store services, including faster fulfillment and delivery processes. The integration of digital and physical assets has been a key focus, with the company reporting over a 40% improvement in the speed of customer returns, which allows for quicker restocking of inventory.

Nordstrom's financial position remains stable, with cash and cash equivalents totaling $397 million as of November 2, 2024, an increase from $375 million a year earlier. The company reported net cash provided by operating activities of $371 million for the nine months ended November 2, 2024, a significant increase from $107 million in the same period last year. Looking ahead, Nordstrom anticipates total revenue growth of flat to 1.0% for fiscal 2024, factoring in the impact of the previous fiscal year's 53rd week. The company remains focused on executing its strategic priorities to drive growth and enhance shareholder value as it prepares for the upcoming holiday season.