Nordstrom’s online sales jump, predicts profits for the year ahead

Nordstrom’s sales and earnings met company projections in the final quarter of the company’s fiscal calendar, buoying the retailer after a tough year.

Announcing its quarterly results on Tuesday, the company reported a profit of $200 million in the fourth quarter, which ended Jan. 29. This helped Nordstrom end the fiscal year with $178 million in profit, compared to a loss of $690 million the previous year.

Revenue was down from 2019, but only slightly. Net sales increased 23% from the same period in fiscal 2020 to $4.4 billion, down 1% from 2019.

It was a welcome respite for a company that has seen its stock price tumble after its last two earnings reports. Shares of the company jumped nearly a third in after-hours trading after the earnings report, ending the day at more than $26 a share.

The company forecast revenue growth of 5% to 7% in 2022 as it continues to grow online sales, which grew 23% in the last quarter of 2021, and address issues with its discount brand, Nordstrom Rack .

“Our primary focus is on three areas: improving Nordstrom Rack performance, increasing profitability, and optimizing our supply chain and inventory flows,” said Nordstrom CEO, Erik Nordstrom, in a statement.


Source link

David A. Albanese