Proactive Investors - Nordstrom, Inc. (NYSE:JWN) remained tepid following Thursday’s after-hours results, with the retailer’s stock down 0.5% in premarket, at $16.75, extending the previous sessions 4.4% fall.
Nordstrom reported better-than-expected Q2 sales and earnings, with an EPS of $0.84 and revenue of $3.77 billion, a decline of 8.3% year-on-year but above the expected $3.67 billion.
Factors like the wind-down of its Canadian operations and the shift in its ‘Anniversary Sale’ timing impacted sales. Excluding these factors, sales would have decreased by about 4% year-on-year, it said.
Nordstrom told investors its second quarter sales included a 275 basis point negative impact from the wind-down of its Canadian operations. This quarter’s results did not include any sales from its Canadian operations compared to a full quarter of sales in 2022.
New anniversary sale timing, which resulted in one week shifting into the third quarter from the second, also had a negative impact of about 200 basis points when compared to 2022, the retailer said.
"We've worked hard to improve our operating model, and our solid results reflect the continued progress we made against our top priorities to improve Nordstrom Rack performance, increase inventory productivity and deliver efficiencies through supply chain optimization," Nordstrom CEO Erik Nordstrom said in a statement.
The company reaffirmed its revenue and adjusted EPS forecast for 2023, expecting a decline in revenue of 4% to 6% when compared to fiscal 2022 and adjusted EPS, which excludes charges related to the wind-down of its Canadian operations, of $1.80 to $2.20.