Nordstrom (NYSE:JWN) reported third-quarter results that exceeded expectations, supported by solid sales growth across both its Nordstrom and Nordstrom Rack divisions. The company also raised its full-year guidance.
The luxury retailer posted adjusted earnings per share of $0.33, beating the Street consensus estimate of $0.22. Revenue reached $3.35 billion, slightly ahead of the $3.33 billion forecasted by analysts and reflecting a 4.6% year-over-year increase. Comparable sales rose 4.0%, with the Nordstrom banner recording a 1.3% net sales increase and a 4.0% boost in comparable sales. Meanwhile, Nordstrom Rack saw net sales surge 10.6%, with comparable sales up 3.9%.
Gross profit margin improved to 35.6%, a 60-basis-point increase year-over-year, driven by strong regular price sales. Digital sales also performed well, rising 6.4% and accounting for 34% of total sales in the quarter.
Building on this strong performance, Nordstrom raised its fiscal 2024 outlook. The company now expects adjusted earnings per share in the range of $1.75 to $2.05, compared to the prior consensus of $1.90. Full-year revenue is anticipated to be flat to up 1.0% compared to fiscal 2023.