shares soared after the retailer lifted its guidance for the second time this year.
Nordstrom’s improving situation is a sign that its upscale shoppers are less affected by inflation than those frequenting more mainstream retailers like
Overall, the retailer posted mixed results in its fiscal first quarter. Nordstrom (JWN) said it lost an adjusted six cents a share, on total revenue of $3.57 billion. Analysts were looking for the company to lose a nickel a share on revenue of $3.29 billion.
For the full year, Nordstrom now expects total revenue growth—including retail sales and credit card revenue—of 6% to 8% from year-ago levels, up from a previous range of 5% to 7% growth. It sees adjusted EPS of $3.20 to $3.50, up from a prior forecast of $3.15 to $3.50 and comfortably above the $3.11 consensus estimate.
Nordstrom jumped 11.2% to $23 in late trading following the news.
Both full-line and its off-price Nordstrom Rack sales increased double digits from year-ago periods in the quarter, at 23.5% and 10.3%, respectively. Nordstrom said that the return of in-person social events and travel bolstered sales, with men’s apparel notching significant double-digit year-over-year sales growth, above prepandemic levels. The retailer also highlighted strong double-digit sales growth in other core categories like women’s apparel, shoes, and designer goods.
The company saw its target higher-income shopper returning to cities as well, as sales at its urban stores surpassed prepandemic levels; the flagship Manhattan location was its top-performing Nordstrom store in the quarter. Moreover, Nordstrom noted that its merchandise margins “improved as a result of favorable pricing impacts and lower markdown rates.”
Concurrently, the firm announced a $500 million share repurchase plan.
The company’s upbeat tone is in contrast to other retailers this quarter, as Walmart (WMT) and Target (
) lowered their outlooks, and apparel sellers have struggled with shifting consumer spending. Yet Nordstrom’s results point to the continuing bifurcation of the consumer, as higher-earning shoppers have been more easily dealing with inflation and continuing to spend on categories they didn’t buy during the pandemic.
Write to Teresa Rivas at [email protected]