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Nordstrom stock jumped 15% after-hours on Q1 results

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.

The post Nordstrom stock jumped 15% after-hours on Q1 results appeared first on Invezz.

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