Nordstrom, Inc. reported its financial results for the quarter and six months ended August 3, 2024, showing a mixed performance compared to the same periods in the previous year. For the second quarter, net sales increased to $3,785 million, a 3.4% rise from $3,662 million in Q2 2023. Total revenues for the quarter also grew to $3,894 million from $3,772 million. However, net earnings for the quarter decreased to $122 million, down from $137 million, resulting in a decline in earnings per share (EPS) to $0.74 from $0.85 (basic) and $0.72 from $0.84 (diluted).

For the six months ended August 3, 2024, Nordstrom reported net earnings of $83 million, a significant recovery from a net loss of $67 million in the same period of 2023. Year-to-date net sales reached $7,006 million, up from $6,726 million, reflecting a 4.2% increase. Digital sales also showed improvement, increasing by 6.2% in Q2 2024 compared to a decline of 12.9% in Q2 2023.

The company’s gross profit for Q2 2024 was $1,384 million, up from $1,282 million, with gross profit as a percentage of net sales improving to 36.6% from 35.0%. However, selling, general, and administrative (SG&A) expenses rose to $1,303 million from $1,200 million, attributed to supply chain asset impairments and higher variable costs. Consequently, EBIT for Q2 2024 was $190 million, slightly down from $192 million in Q2 2023.

Strategically, Nordstrom has been undergoing significant changes, including the wind-down of its Canadian operations, which began in March 2023. This decision has impacted net sales, contributing to a 35 basis point decline for the six months ended August 3, 2024. Additionally, the company incurred a non-cash impairment charge of $51 million related to supply chain assets in Q2 2024.

As of August 3, 2024, Nordstrom's total current assets increased to $3,448 million from $3,136 million in February 2024, while total liabilities rose to $3,218 million. The company reported total shareholders’ equity of $948 million, up from $674 million a year earlier. Nordstrom also maintained a quarterly dividend of $0.19 per share, with a remaining share repurchase capacity of $438 million from a $500 million program authorized in May 2022.

Looking ahead, Nordstrom anticipates a fiscal year 2024 revenue outlook with a range of 1.0% decline to 1.0% growth compared to fiscal 2023, influenced by the absence of the 53rd week that was present in the previous year.