What: Sales and earnings are in line with fiscal 2021 outlook, with fourth quarter results demonstrating progress against the department store’s long-term growth strategy.

Why it is important: Digital sales in the fourth quarter decreased 1% compared with the same period in fiscal 2020 and increased 23% compared with the same period in fiscal 2019. Digital sales represented 44% of total sales during the quarter and 42% of sales for the fiscal year.

In its fourth quarter results report, Nordstrom demonstrates progress against its long-term growth strategy. The company reported net earnings of USD 200 million, and earnings before interest and taxes ("EBIT") of USD 299 million for the fourth quarter. For the fiscal year ended January 29, 2022, net earnings were USD 178 million, with EBIT of USD 492 million.

For the fourth quarter ended January 29, 2022, net sales increased 23% versus the same period in fiscal 2020 and decreased 1% versus the same period in fiscal 2019. Gross merchandise value ("GMV") increased 24% versus the same period in fiscal 2020 and was flat versus the same period in fiscal 2019. Nordstrom banner net sales were flat and GMV increased 2% compared with the fourth quarter of 2019. Net sales for Nordstrom Rack decreased 5% versus the fourth quarter of fiscal 2019, a sequential improvement of 320 basis points over the third quarter.

Sales in the home, active, designer, beauty and kids categories had the strongest growth compared with the fourth quarter of 2019. The company made significant progress on its merchandising strategies throughout 2021, with choice count at an all-time high, increasing 50% over last year, and more than 300 new brands launched during the year. Additionally, alternative vendor partnership models accounted for 10% of Nordstrom banner GMV in the fourth quarter, up from 7% in 2019.

The company has provided the following financial outlook for fiscal 2022:

•    Revenue growth, including retail sales and credit card revenues, of 5 to 7% versus fiscal 2021

•    EBIT margin of 5.6 to 6.0% of sales

•    Income tax rate of approximately 27%

Nordstrom strong fourth quarter