Nordstrom Q3 net sales increase, adjusts FY24 outlook

US department store giant Nordstrom welcomed a 4.6 percent increase in net sales for the quarter ended November 2, 2024, while comparable sales rose 4 percent compared to the same period in the year prior.

The company’s banner net sales climbed 1.3 percent (4 percent on a comparable rate), while its Nordstrom Rack banner also reported an increase in net sales, its own rising 10.6 percent (3.9 percent comparable sales).

Digital sales at the company increased 6.4 percent, and represented 34 percent of total sales during the quarter.

Overall gross profit came to 35.6 percent, increasing 60 basis points with strong regular price sales being cited as the cause. EBIT fell from 102 million dollars to 83 million dollars for the quarter, while adjusted EBIT came to 97 million dollars.

Nordstrom said women’s apparel and activewear saw double-digit growth, while shoes, men’s apparel and kids were also up in the mid to high single-digits, versus 2023. Growth was also seen on the second quarter sales of women’s apparel shoes and men’s apparel.

In a release, president of Nordstrom, Inc., Pete Nordstrom, said Q3 results demonstrated a “strategic focus on curating a compelling brand assortment” that was resonating with customers.

He continued: "Our actions throughout this year have led to this moment, and we feel well-positioned for a successful holiday season and look forward to helping our customers celebrate the moments that matter.”

In light of the results, Nordstrom updated its financial outlook for fiscal year 2024 to reflect “accelerated technology depreciation impacts” that are expected for Q4.

As such, its revenue range is forecast to be between flat to 1 percent growth, with a comparable sales growth of 1 to 2 percent. Its EBIT margin is anticipated to be in the region of 3 to 3.4 percent of sales, while EPS is expected to sit between 1.40 and 1.70 dollars.