However, revenue fell short, highlighting challenges ahead of Black Friday and the holiday season for the upscale department store.
In the three months ending Oct. 28, sales at Nordstrom’s flagship stores declined by 9.4%, missing market expectations. Nordstrom Rack, the off-price stores, experienced a more modest 1.8% dip, aligning with analysts’ estimates. While investors appreciate positive trends at Rack stores, Nordstrom needs further progress, particularly at the flagship brand, where sales of $2.05 billion missed estimates by about $100 million.
Shares displayed volatility, alternating between losses and gains in late New York trading. Despite challenges, Nordstrom’s strategy to offer high-end items at a discount is showing promise, especially at Rack stores. However, competition with discount rivals like TJX Cos remains, necessitating progress for Nordstrom’s overall success.
Earnings per share and gross margin surpassed estimates, driven by factors such as lower markdowns, enhanced inventory productivity, and reduced buying and occupancy costs. CEO Erik Nordstrom struck a measured tone, acknowledging uncertainties and softening consumer spending. The company remains agile and customer-focused as it navigates the holiday season.
