Proactive Investors - Nordstrom, Inc (NYSE:JWN) is likely to report a decline in revenue and earnings for its fiscal first quarter when it reports after the closing bell on Wednesday, May 31.
According to the Zacks Consensus Estimate, the department store chain’s revenue for the quarter is expected to be about 13% lower at $3.11 billion, while its loss will widen to $0.12 per share from $0.06 in 1Q 2022.
Nordstrom flagged a decline in full-year 2023 revenue of 4% to 6% when it released its fourth-quarter 2022 earnings in March as it wound down its Canadian operations and due to the positive impact of a 53rd week on fiscal 2022.
Closing shop in Canada would enable the retailer to simplify its operations and further increase its focus on driving long-term profitable growth in its core US business, CEO Erik Nordstrom said in a statement at the time.
Still, its 1Q results are expected to reflect the significant impacts of decelerating demand trends, with the tough economy reducing consumer spending in lower-income groups, according to Zacks. It also noted that higher markdowns as it tries to maintain inventory levels have weighed on gross margin.
Countering that, boosting eCommerce and digital networks, supply-chain channel improvement, and marketing efforts have resulted in gains in Nordstrom’s digital business, with improved traffic across Nordstrom and Nordstrom Rack, as well as increased utilization of the Buy Online, Pick Up In-Store service.
Its mobile app has also been performing well. Alongside these, Zacks said the integration of Rack.com into Nordstrom.com is anticipated to have contributed to the company's top line in the to-be-reported quarter.