Nordstrom's Q2 Earnings Exceed Expectations with Adjusted EPS $0.96, Stock Jumps 10% on Anniversary Sale Success

Aug 27, 2024, 08:15 PM

Nordstrom reported stronger-than-expected earnings for the second quarter of 2024, leading to a 10% surge in its stock price. The retailer posted net earnings of $122 million and an adjusted earnings per share (EPS) of $0.96, surpassing the anticipated $0.71, with revenue reaching $3.89 billion. This represents a 3.4% increase in total net sales year-over-year, driven by the success of its Anniversary Sale event. Comparable sales rose by 1.9%, with department store sales up 0.9% and Rack sales increasing by 8.5%. Adjusted EBIT was reported at $244 million, and total gross merchandise value (GMV) increased by 3.5%. Despite the positive earnings report, Nordstrom issued cautious guidance for the rest of the year, raising its full-year adjusted EPS outlook to a range of $1.75 to $2.05, while forecasting revenue growth between -1% to 1%. The company's inventory increased by 8%.