Nordstrom Shares Surge 10% on Strong Q2 Earnings Beat, Rack Sales Up 8.5%

Aug 28, 2024, 10:50 AM

Nordstrom Inc. (NYSE: JWN) reported a strong second quarter performance, with adjusted earnings per share (EPS) of $0.96, surpassing expectations of $0.71. The company's revenue for the quarter was $3.89 billion, slightly below the consensus estimate of $3.90 billion, but up 3.4% year-over-year. Nordstrom achieved net earnings of $122 million and an adjusted EBIT of $244 million. The positive results were largely driven by the success of Nordstrom's Anniversary Sale event, which contributed to a 3.5% increase in total gross merchandise value. Rack sales were notably strong, rising 8.5%. Nordstrom's shares rose 10% following the earnings announcement. The retailer also raised its full-year adjusted EPS outlook to a range of $1.75 to $2.05, from a previous estimate of $1.75, and improved its revenue growth forecast to between -1% and 1%, compared to the prior range of -2% to 1%. Despite the upbeat earnings, Nordstrom issued cautious guidance for the remainder of the year.