What: Nordstrom releases its Q2 earnings and forecasts for the FY23 revenues.

Why it is important: The results reflect the company’s progress on the Nordstrom Rack division, its inventory productivity, and supply chain optimisation. US shoppers saved the day in Europe, but US retailers are struggling domestically which could generate a snowball effect.

The company surpassed expectations and reported Q2 earnings of USD 137 million, earnings per diluted share of 84 cents and EBIT of USD 192 million. Net sales decreased by 8.3% compared to 11.6% in the first quarter. GMV also decreased by 8.5%. Shareholders received a quarterly dividend of 19 cents per share.

Nordstrom Inc. saw substantial improvement in sales at both Nordstrom and Rack. Kid’s and men’s apparel performed better than average for the quarter while active and beauty grew by low single-digits versus 2022.

Nordstrom's stock initially rose but later dropped almost 5% in after-hours trading. The company is expecting a decline in revenue of 4% to 6% for the year and earnings per share betzeen USD 1.80 and USD 2.20, excluding charges related to the Canadian operations wind-down.

Fashion United 

Seattle Times