Nordstrom Q2 revenue rises on boost from sales event, shares surge (updated)

Nordstrom

27/08/2024 21:22

(Adds shares in lede)
       Aug 27 (Reuters) - Nordstrom  JWN.N  reported a
better-than-expected growth in second-quarter sales on Tuesday,
buoyed by its crucial Anniversary Sale event, even as consumers
remain cautious amid inflationary pressures, sending its shares
up 11% in extended trading.
    The upmarket department store chain also slightly revised
its annual comparable sales forecast, raising the lower end to a
range of flat to 2% growth, up from its previous projection of a
1% decline to 2% growth.
    While affluent shoppers continue to spend, albeit at a
slower pace, benefiting apparel chains such as Abercrombie &
Fitch  ANF.N  and Gap  GAP.N , middle- and lower-income
consumers are feeling the pinch, hurting sales at department
store chains such as Macy's.  M.N .
    A slightly earlier start to Nordstrom's Anniversary Sale
event, which ran from July 15 through Aug. 4 this year, helped
drive customers to both physical stores and the company's
website, contributing 100 basis points to net sales compared to
2023.
    Nordstrom's shares have declined approximately 3% over the
past month. Analysts cited muted demand during the sale period,
with Placer.ai foot traffic data suggesting July was the
quarter's weakest month. 
    The stock is up about 16% this year compared with a roughly
18% rise in the broader S&P 500 index  .SPX .
    Total revenue at the company rose 3.2% to $3.89 billion in
the quarter ended Aug. 3, from $3.77 billion a year earlier,
almost in line with analysts' average expectation of $3.90
billion, according to LSEG data.
    The Seattle, Washington-based company also revised its
earnings per share projection to between $1.75 and $2.05, up
from the previous range of $1.65 to $2.05
    On an adjusted basis, the company reported a profit of 96
cents per share, compared to 24 cents loss in the first quarter.
    

 (Reporting by Savyata Mishra in Bengaluru; Editing by Tasim
Zahid)
 ((Savyata.Mishra@thomsonreuters.com;))