Nordstrom shares surge 10% on strong Q2 earnings beat, upbeat guidance

SEATTLE - Nordstrom, Inc. (NYSE:JWN ) reported better-than-expected second quarter earnings and revenue on Tuesday, sending its shares soaring 10% in after-hours trading.

The upscale retailer also provided an optimistic outlook for the full fiscal year, surpassing analyst estimates.

For the quarter ended August 3, 2024, Nordstrom posted adjusted earnings per share of $0.96, significantly beating the analyst consensus of $0.71. Revenue rose 3.4% YoY to $3.89 billion, slightly above the $3.88 billion analysts had projected.

The company's total comparable sales increased 1.9% compared to the same period last year. Nordstrom's flagship banner saw comparable sales rise 0.9%, while Nordstrom Rack posted a stronger 4.1% comparable sales growth.

Digital sales grew 6.2% YoY, representing 37% of total sales for the quarter. The company noted that the timing shift of its Anniversary Sale positively impacted net sales by approximately 100 basis points.

"Our second quarter results were solid, and we're encouraged by the continued topline strength in both banners and the progress we're making to expand gross margin and increase profitability," said Erik Nordstrom, CEO of Nordstrom, Inc.

Looking ahead, Nordstrom provided an upbeat full-year earnings forecast of $1.75 to $2.05 per share, with the midpoint of $1.90 surpassing the analyst consensus of $1.76.

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Source: Investing.com