Nordstrom beats quarterly estimates, breaking weak demand trend at department stores (updated)

Nordstrom

26/11/2024 21:14

(Adds shares in paragraph 2)
       Nov 26 (Reuters) - Nordstrom  JWN.N  beat third-quarter
revenue and profit estimates on Tuesday, helped by rising demand
for popular brands including On Running, Hoka and Vuori at its
department stores.
    Shares of the company were up about 1% in extended trading.
    Nordstrom beat third-quarter revenue and profit estimates on
Tuesday, helped by rising demand for popular brands including On
Running, Hoka and Vuori at its department stores.
    Adding fresh and desired brands to its shelves has helped
Nordstrom appeal to more customers. The company's efforts to
focus on digital growth and expand Rack stores, its off-price
brand, have further boosted sales ahead of a potentially mixed
holiday season.
    The Seattle, Washington-based company now expects a growth
of 1% to 2% from its previous range of flat to a 2% rise.
    Apparel chains such as Abercrombie & Fitch  ANF.N  and Gap
 GAP.N  also benefited from customers purchasing their new and
trendier product offerings.
    Nordstrom bucked the trend on tepid spending at department
stores by luring in shoppers for categories including women's
apparel, shoes and men's apparel, while peers such as Macy's
 M.N  and Kohl's  KSS.N  struggled with patchy demand.
    Nordstrom's total revenue rose 4.3% to $3.46 billion in the
quarter ended Nov. 2 from a year earlier. Analysts, on average,
estimated a 0.8% rise to $3.35 billion, according to data
compiled by LSEG.
    Benefits from strong full-price sales and improvements in
variable costs across the business helped the upmarket
department store chain expand its profit margins.
    Its quarterly gross profit as a percentage of sales rose 60
basis points to 35.6%.
    The company reported adjusted profit of 33 cents per share
for the third quarter, compared with analysts' expectations of
21 cents apiece.
    During the July to September period, foot traffic at
Nordstrom and Nordstrom Rack stores grew 1.4% and 5% year over
year, respectively, according to Placer.ai data.
    In September, Nordstrom's founding family offered to take
the department store chain private for $23 per share, teaming up
with a Mexico-based retailer in its latest bid.
     
     

 (Reporting by Anuja Bharat Mistry in Bengaluru; Editing by Alan
Barona)
 ((mailto:AnujaBharat.Mistry@thomsonreuters.com))