Nordstrom Inc (NYSE: JWN) stock jumped nearly 15% in extended trading on Tuesday after the retailer reported a surprise profit for its fiscal first quarter and raised its full-year guidance.
Nordstrom Q1 financial highlights
Earned $20 million in Q1 that translates to 13 cents per share.This compares a $166 million loss last year or $1.05 a share.An impairment charge resulted in 6 cents of adjusted per-share loss.Sales jumped 19% YoY to $3.47 billion, as per the earnings press release.Consensus was for adjusted per-share loss of 5 cents on $3.29 billion in revenue.Nordstrom and Rack sales were up 23.5% and 10.3% in Q1, respectively.Digital sales remained unchanged versus the same quarter last year.Ending inventory on a year-over-year basis was up 23.7% in the first quarter.
The retailer’s better-than-expected results signal inflation had a softer effect on its upscale shoppers in the first quarter. The stock is still down more than 20% from its year-to-date high in April.
Revised guidance and President’s remarks
For the full financial year, Nordstrom now forecasts a 6.0% to 8.0% year-over-year increase in sales on up to $3.68 of EPS. In comparison, analysts had called for $3.11 of per-share earnings in 2022.
The American luxury department store chain also authorised 19 cents a share of quarterly cash dividend and $500 million in stock repurchase. In the earnings press release, President Pete Nordstrom said:
Looking ahead, we’re committed to driving additional merchandise margin improvement and increasing supply chain productivity, to deliver incremental profitability while continuing to elevate the customer experience.
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