Nordstrom Raises Sales Outlook After Strong Holiday Performance
The Seattle-based department store giant, Nordstrom, has revised its full-year sales outlook upward, citing stronger-than-expected holiday sales at its stores and online platform. Despite maintaining its profit guidance, the company now anticipates full-year revenue growth of 1.5% to 2.5%, including the impact of having one fewer fiscal week.
A Promising Holiday Season
Nordstrom’s net sales rose 4.9% and comparable sales increased 5.8% for the nine-week holiday period that ended January 4, compared to the year-ago quarter. The company’s efforts to remain competitive in the promotional environment and the strength of its offerings were credited for the better-than-expected results.
Banner Performance
During the holiday period, net sales at the Nordstrom banner increased 3.7% and comparable sales rose 6.5%. At Nordstrom Rack, the company’s off-price banner, net sales were up 7.4% and comparable sales increased 4.3%.
Insights into Consumer Health and Retail Performance
Nordstrom’s results provide valuable insights for investors monitoring the health of U.S. consumers and the performance of retailers during the key shopping season. Early holiday numbers have looked promising, with online spending in the U.S. rising nearly 9% from November 1 through December 31 compared to the year-ago period, according to Adobe Analytics.
Going Private
The update comes as the founding family prepares to take the retailer private in a roughly $6.25 billion buyout deal with Mexican department store El Puerto de Liverpool. The transaction, approved by the company’s board of directors, is expected to close in the first half of 2025.
Upcoming Earnings Report
Nordstrom is scheduled to report its full fourth-quarter and full-year results on March 4. Shares of Nordstrom closed at $24.01, down roughly 4% from its 52-week high.
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