Nordstrom (JWN) Q2 2021 earnings

A consumer leaves a Nordstrom retailer on Might 26, 2021 in Chicago, Illinois.

Scott Olson | Getty Pictures

Nordstrom shares fell Tuesday after the division retailer chain reported fiscal second-quarter gross sales remained under pre-pandemic ranges.

In contrast with a 12 months earlier, gross sales greater than doubled, as consumers used Nordstrom’s anniversary sale as a purpose to go again to the mall and splurge on new footwear, clothes and activewear. However on a two-year foundation, income was down 6%.

Nordstrom was feeling extra optimistic about the remainder of the 12 months and raised its outlook, following rivals Macy’s and Kohl’s, which did the identical in current days.

However its shares had been down greater than 6% in prolonged buying and selling.

This is how Nordstrom did for the quarter ended July 31 in contrast with what Wall Road was anticipating, based mostly on a survey of analysts by Refinitiv:

  • Earnings per share: 49 cents vs. 27 cents anticipated
  • Income: $3.66 billion vs. $3.36 billion anticipated

Nordstrom reported internet revenue of $80 million, or 49 cents per share, in contrast with a lack of $255 million, or $1.62 a share, a 12 months earlier. Analysts had been anticipating earnings of 27 cents per share.

Income rose to $3.66 billion from $1.86 billion a 12 months earlier, topping estimates for $3.36 billion.

Complete gross sales from Nordstrom’s anniversary sale event had been up 1% in contrast with 2019, the corporate mentioned. Final 12 months’s occasion was pushed into the third quarter because of the Covid pandemic.

“A compelling merchandise assortment, mixed with new and differentiated providers and experiences, contributed to strengthening buyer engagement and bettering monetary outcomes throughout our Anniversary Sale,” President Pete Nordstrom mentioned in a press launch.

At Nordstrom’s namesake division retailer model, income was up 127% in contrast with a 12 months earlier however down 5% on a two-year foundation.

At Nordstrom Rack, an off-price division that competes with TJ Maxx and Macy’s Backstage, gross sales had been up 61% from 2020 however had been down 8% from 2019.

The corporate mentioned its on-line gross sales rose 30% from a 12 months earlier, representing 40% of Nordstrom’s whole enterprise.

Nordstrom now expects its annual income to rise greater than 35%, up from a previous outlook calling for 25% progress. Analysts had been in search of a 30% improve, in response to Refinitiv.

As of Tuesday’s market shut, Nordstrom shares are up 21% 12 months so far, bringing the retailer’s market cap to $6 billion.

Find the full earnings press release from Nordstrom here.

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